Startup Releases First-Ever Tool for Evaluating Life Insurance Benefits at Work

NEW YORK, Nov. 7, 2013 /PRNewswire-iReach/ -- Life insurance startup Coverpath.com today released a free tool to help people make smarter decisions about their life insurance benefits at work. The tool, at coverpath.com/work, provides individualized, quick comparisons of an employees work life insurance plan with his or her other options.

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"We know it's easy for people to buy insurance from work, and sometimes that really is a good option for them. But we also see many people who don't understand the pluses and minuses of buying the life insurance from work as compared to buying it separately. They tend to overestimate the cost savings they get from their work plan and tend to gloss over the guarantees they can get with individual policies," said Yaron Ben-Zvi, Coverpath's Founder and CEO. 

The Coverpath Tool

The Coverpath tool tries makes the choice between work and other types of life insurance coverage clearer. It works by asking users to enter basic information about their employer plan, such as cost and coverage amounts available. In return it gives users up to three options for how to buy their life insurance: from work only, from outside of work, or some combination of the two. Each option has a price and guarantee level associated with it, so employees can quickly assess cost differences and advantages of each.

The Problems of Work Life Insurance

Roughly 40% of people who have life insurance buy it only from work, according to data from LIMRA. Unfortunately, buying life insurance only from an employer plan often means these people settle for less insurance than they actually need due to coverage limits in these plans. People who get their coverage only from work tend to have the lowest amount of coverage than any other insured group.

Group plans provided by employers also don't have the guarantees associated with individual plans. Guaranteed level term policies that are bought outside of work provide guaranteed pricing and coverage for the term of the policy. By comparison, work plans have costs that tend to increase every year and the plan itself can be cancelled by either the employer or the insurer at any time. Also, while many employer plans provide options for taking a policy with you after you leave a job, those options can often come with a much higher price tag.

To Learn More (from the Coverpath Blog)

How Much Employer Based Life Insurance Should You Buy

Leaving a Job: What Happens to Your Life Insurance?

The #1 Mistake Smart People Make: Buying Life Insurance from Work

About Coverpath

Coverpath is a New York City based life insurance startup seeking to reinvent the way life insurance is bought to make it simple, convenient and transparent.

Sources

http://www.limra.com/uploadedFiles/limracom/About/11FOL.pdf

http://www.bls.gov/news.release/ebs2.t05.htm

Media Contact: Sam Elsamman, Coverpath, 646-582-9012, [email protected]

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SOURCE Coverpath