Imagine the devastating position your loved ones could be in if you suddenly passed away. Do you have a “what-if” plan? Death is never an easy topic of discussion. However, it is one of the most important conversations you may ever have with your loved ones. A healthy financial plan makes sure that the ones you love the most will be taken care of when you are gone. One common method of accomplishing this is through the use of life insurance. Fortunately for you, AT&T does provide life insurance plans for employees and some retirees. The big issue is determining the amount of coverage – typically the higher the coverage the higher the monthly payment. It’s worth taking a closer look at your AT&T life insurance benefits to ensure you have enough coverage or to make sure you are not paying for more than what you need.
LIFE INSURANCE OPTIONS FOR WORKERS For employees currently with AT&T, you may be eligible for basic coverage through the company. This means the policy is managed and paid for by AT&T. In most cases, basic life insurance coverage is equivalent to one year of compensation. If you need additional coverage, there are options to purchase it through AT&T’s group plan. It is a cost-effective way to gain access to additional coverage that may suit your situation better. The cost and amount of coverage you are eligible for vary based on the following factors:
Years of service
LIFE INSURANCE OPTIONS FOR RETIREES If you are an employee that meets the ‘Modified Rule of 75’, you are eligible for basic coverage after you retire. The benefit amount that you would be eligible for depends on your job title and compensation. Also, supplemental life insurance plans may also be available to you when you decide to retire from AT&T. There are additional factors, such as age, that will be considered when deciding cost and eligibility.
SO HOW MUCH DO YOU REALLY NEED? This is a question many individuals face and is largely determined by these varying circumstances:
Are you paying on large expenses; such as mortgages, student loans, etc.?
Are you a caregiver to a loved one?
Is your family young?
Are you a one-income household?
If you are currently in one of these situations, having a larger policy can help minimize the financial impact your death may have on your loved ones. There are online life insurance calculators that can be a guide to how much coverage you will need. Remember: always review your policy and the amount of coverage you currently have. As you age, and your financial obligations lessen, you may want to reduce the amount of coverage. You can always consult with a Quest Financial advisor to review your portfolio and adjust your coverage so you can enjoy the extra savings when you retire. If you are looking for more information on what kind of benefits and policies you may be eligible for, please feel free to download our guide “The Simplified Guide to Retirement for AT&T Employees”, or feel free to give us a call at 866.QUEST.01(866.783.7801) for a no-obligation consultation.
Investment Advisory services offered through ChangePath, LLC a Registered Investment Advisor. ChangePath, LLC and Quest Financial are unaffiliated entities. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. Neither ChangePath, LLC or Quest Financial are endorsed or recommended by AT&T.
Licensed Insurance Professional. We are an independent financial services firm helping individuals create retirement strategies using a variety of investment and insurance products to custom suit their needs and objectives. Investing involves risk, including the loss of principal. No Investment strategy can guarantee a profit or protect against loss in a period of declining values. Any references to protection benefits or lifetime income generally refer to fixed insurance products, never securities or investment products. Insurance and annuity products are backed by the financial strength and claims-paying ability of the issuing insurance company. The information is not intended to be investment, legal or tax advice. The agent can provide information, but not advice related to social security benefits. The agent may be able to identify potential retirement income gaps and may introduce insurance products, such as an annuity, as a potential solution. For more information, contact the Social Security Administration office, or visit www.ssa.gov.