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Do Teachers Get Life Insurance After Retirement?

While teaching doesn’t always offer the best salary around, it usually comes with benefits that last you throughout your career and long after. One of those benefits is often life insurance, depending on your location and district. If you’re looking to maintain your life insurance even after you’ve retired, you’ll be happy to know that it is usually possible if a few minimum guidelines are met. Here’s everything you need to know about hanging onto your life insurance policy long after you’ve left the classroom.

Life Insurance for Retirees

Most people of retiring age find it hard to obtain a life insurance policy as rates spike when one grows older and their risk increases. In fact, averages can tip well over $1000 monthly for a medium-level policy amount. Those steep prices are unattainable for most, which makes the prospect of maintaining a pre-existing policy even more exciting.

Requirements for Maintaining Your Life Insurance Policy

For teachers, there are generally a few requirements that need to be met to maintain coverage after retirement. Below are a few to keep in mind but remember to always verify eligibility with your employer and life insurance provider.

Policy Length

Generally, it’s required that you hold your policy for a certain amount of time before retirement to keep your benefits upon retirement. The average length of time is five years, though it can vary depending on the company. The reason a minimum length of time is required is to stop individuals from taking out a policy a month before retirement to enjoy a lifetime of benefits. Instead, it has to be earned.

Smooth Transition

Most life insurance companies will require that you keep your original employer-sponsored group insurance until it’s time to retire and adjust the policy. If you switch the policy before retirement, it may not be eligible for a post-retirement rollover.

Maintaining Your Life Insurance Policy

Remember that your life insurance policy may be able to carry over past retirement but that you’ll likely be liable for the payments. Instead of your employer subsidizing the price or completely covering it, you’ll now need to budget for maintaining that policy when you retire. Some policy providers also reduce your coverage over time. Each year you may find a reduction of a few percentages, and then it continues to depreciate.

Though you may find that rolling over your policy is easiest, in the end, the price and hassle for the same policy through your former employer may be worse than opting for a third-party policy. It’s important to research to determine which price point and coverage suit your needs. A simple search of senior term life insurance quotes or similar will help to narrow down your choices.

The Bottom Line

Teachers looking for life insurance upon retirement have multiple options to meet their needs. Whether it be rolling over a former employer policy or shopping for a new one, there are options that can fit your unique needs. In either case, it’s important to carefully consider which will work with your needs and protect everything you love, especially as you enter the next phase of life.