Is it legal for our group insurance company to mandate life insurance?
Posted on February 09th, 2009 in Life Insurance
Linda M asked:
Our group health insurance provider is now saying we have to buy life insurance through one of its wholly owned subsidiaries. Is this legal in the State of Ohio?
Our group health insurance provider is now saying we have to buy life insurance through one of its wholly owned subsidiaries. Is this legal in the State of Ohio?
This post has 7 comments
February 12th, 2009
If your employer offers a group insurance policy, you have to accept their choice if you want to participate. Otherwise, decline it.
February 12th, 2009
Nope. You cannot be compelled to purchase life insurance.
February 14th, 2009
I don’t see how that can be legal. HOWEVER, are you sure it’s not that you get a DISCOUNT IF you also buy the life insurance? Example, I have State Farm homeowners AND auto, so I get multi-line discount. IF I had only the homeowners with them and car elsewhere I’d get no such discount. In that case, the package deal IS legit.
Once you clarify that if it’s not a discount package deal, then I’d contact the AG’s office (Attorney General) as I can’t see a non-package deal being legit.
February 15th, 2009
NO….BUT FEEL FREE TO CHECK WITH THE STATE INSURANCE COMMISSIONER
February 18th, 2009
usually employers automatically pay for gropu life insurance equal to one times your salary and offer optional additional coverage - maybe the add’l coverage is what they are referring to?
February 19th, 2009
Often group health plans offer a small (really small) group life with the health coverage. It usually is in small amounts ($10,000) and is usually term so it is really cheap. If you don’t buy it, you may only save a few dollars per year.
SO many people are vastly underinsured and only discover this fact when a family member dies or when they become sick and cannot get coverage at a reasonable cost.
Go meet with a licensed insurance agent or financial planner and discuss your specific goals and your options.
IMO, group life plans are insufficient, costly and usually not portable. When you leave the company, the insurance disappears. If you stop working because of an illness, it is impossible to get coverage. (My $0.02)
February 19th, 2009
Not enough information here.
If you want to buy group life insurance, it HAS to be through whichever group your employer selects. If they’re saying you HAVE to have life insurance, then they have to pay for the entire premium. If you want to buy life insurance with a different company, you can - but you have to do that on your own. The ONLY coverage you can get through your employer, is the plan they pick, and they can pick ANYONE they want.
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