How to Get Free Life Insurance

How can you get free life insurance?  This might sound like a silly question, but would you be surprised if I told you that you actually CAN get free life insurance?

The most common method of obtaining free life insurance is through your employer sponsored group insurance plan.  Many employees aren’t aware that their employer actually may provide free life insurance for them as a benefit within their employer sponsored plan.  Most commonly, the employer based plan will provide the first $50,000 of life insurance at no charge, and if the employee wishes to increase their coverage, the difference in premium is considered income to the employee on their paycheck.  The reason for this is due to the employer’s limits on tax deductibility of life insurance premiums for policies over $50,000.  Just suffice to say that it’s worth taking a closer look at your employee benefit paperwork to see if in fact you enjoy the benefit of free life insurance within your company plan.

Another way of obtaining free life insurance, or perhaps relatively inexpensive, comes in the form of AD&D.  No, AD&D in this case is NOT Advanced Dungeons and Dragons!  AD&D stands for Accidental Death and Dismemberment.  In other words, the life insurance component only pays if the insured dies from an accident and not from causes such as sickness or disease.  Believe it or not, odds are, you’re not going to die from an accident, but it does happen.  Again, review your employer based plan since it may actually include AD&D.

Also, credit cards, credit unions, and financial institutions sometimes include free AD&D with other offers, or they may offer a very inexpensive AD&D policy.  The question is, are these plans worth it?  Of course if it’s free it’s worth it, but paying for an AD&D policy rarely pays off.  Again, the chance of dying in an accident are pretty slim.  In fact, In the USA there are about 40000 deaths in car crashes every year. That suggests that if you drive the average amount for 50 years, your chances of dying in a car are roughly 1 in 100.  What about flying?  Well, if you fly on one of the top 25 airlines in the world, your chances of dying in an airline accident are about 1 in 10.5 million! According to my math, those are pretty favorable odds that all point to the fact that there’s a good chance you won’t die in an accident.

The most interesting way to obtain free life insurance that I’ve heard of recently is a program whereby Mass Mutual gives back to their community by paying premiums for a term life policy to fund college for kids.  The program is available to people who are in need financially.  Here’s what Mass Mutual says about their program:

LifeBridgeSM – Free Life Insurance Program
Our unique LifeBridge Free Life Insurance Program provides $50,000 term life insurance policies free-of-charge to eligible parents or guardians. We pay the premiums and our agents drive the program in their communities. If an insured parent or guardian dies during the 10-year term, a $50,000 benefit funds a trust serviced by our trust company to help pay their children’s educational expenses (trust services are provided by the MassMutual Trust Company, FSB). Our goal is to give away $1 billion in coverage. As of March 1, 2012, we are well over halfway to our goal, having provided almost $615 million in free life insurance coverage across the country.

We’ve all heard the saying, “you can’t get something for nothing” however, that’s not always the case.  In the case of how to get free life insurance the caveat is that you have to die first to collect.  Nonetheless, it’s certainly worth being aware of what free life insurance may be available to you via your employer, credit cards, financial institutions, or even innovative programs to help fund college with life insurance proceeds such as the one Mass Mutual offers.  Enjoy life!

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