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Asked: Apr 25, 2010

Do I need to sign this agreement from my employer switching carriers?

My Employer of 13yrs is changing our Group Life Ins. carrier. He has paid the premium for my policy since my employment. He is now requiring that I complete a form from the other carrier (Sign and Date an Agreement) that states if the group policy does not require my contribution I can not decline, there is also a statement saying if the group policy requires my contribution, I authorize my employer to deduct from my pay. I am hesitant and don't feel I should have to sign to this agreement, Please advise

Categories: In Pennsylvania

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Answers

This is pretty standard procedure and required on most group life insurance policies. Most life insurance companies require 100% participation if the employer is paying 100% of the premium. When this is the case, there would be no logical reason for the employee to not accept free life insurance. However, if your employer elects to not pay 100% of the premium, you will have the right to not participate. If you do choose to participate, your share of the premium will be deducted from your payroll. This saves the employer on payroll ta costs and also guarantees that they will collect the employee's share of the premium.

Answered: May 02, 2010

 

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