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Life insurance for teachers

Group life insurance through your school is a great perk, but it may not be enough.

Updated Aug 28, 2020. What changed?

Fact checked

As a teacher, you’ve probably pivoted more times than you can count in 2020. With a new school year around the corner, some districts are choosing to reopen buildings with strict safety measures in place. To prepare for the return to the classroom, familiarize yourself with your life insurance options, which could include a combination of group, supplemental and individual life insurance.

Life insurance options for teachers

People who work in the education field have three main options for getting life insurance coverage. You have the flexibility to choose one option or a combination of each depending on your coverage needs.

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	Group life	Supplement	Individual life
Policy limits	Low limits, usually capped at $50,000	Mid-size limits, usually capped at 3x to 5x your salary	High limits
Cost	Usually free	Low cost	Most expensive
Portable	No	Yes, in most cases	Yes
Convertible	No	Yes, in most cases	Yes
Spouse and child coverage	No	Yes, for an additional cost	Yes, for an additional cost
Medical exam or questionnaire	No	Sometimes	Sometimes
Flexibility	None	Little flexibility	Most flexible
Permanent life option	No	No	Yes

Group life for educators

These policies, sometimes referred to as basic life, are offered as part of your employee benefits. Premiums are typically subsidized, which means your employer fully or partially pays for your coverage, and any extra payments are deducted from your paycheck. Either way, group policies are a budget-friendly option for teachers in need of life insurance.

Along with offering cheap and sometimes free coverage, group policies are open to all full-time employees — making them ideal for seniors or teachers who have pre-existing medical conditions that can make it challenging to find coverage.

If your school participates in group life insurance, you’ll be able to sign up when you start working or during the annual enrollment period.

Downsides to group life

Choosing group coverage is a no-brainer if your employer foots the bill. However, there are a few downsides that may make you consider buying more coverage:

Low policy limits. Group life coverage tends to be capped at small amounts, like $50,000 — which may leave you underinsured, especially if you’re a breadwinner, parent or homeowner.
Can’t take it with you. Because group life is tied to your workplace, you may not be able to take your policy with you if you change jobs.
Part-timers not eligible. Most school districts only offer coverage to employees working over 20 hours, so if you’re not a full-timer you may not qualify for your school’s group life policy.
No customization. Since a group life policy is set up and determined by your employer, you won’t be able to customize your policy with add-ons specific to your needs, such as an accelerated death benefit rider.
No spouse or child coverage. Your group’s basic life insurance will only cover you, and doesn’t allow the option to choose additional coverage for your spouse or child, as supplemental and individual life do.

Supplemental life for educators

Most employers allow you to buy additional life insurance coverage to complement your basic group policy. This is known as supplemental or voluntary life insurance, and you’ll need to pay for it out of pocket — but you’ll access cheaper group rates. If you’re a high-risk applicant — such as a senior, smoker or someone who spends their weekend skydiving and hang gliding — it may be worth opting into supplemental life insurance.

Supplemental life is offered up to a maximum amount set by your school district and insurer. It’s usually up to $300,000 to $500,000 dollars or three to five times your salary, whichever is less. Try to opt for the maximum guaranteed issue amount, which is the most coverage you can purchase without having to take a medical exam. It’s usually around $200,000, and you’ll be able to increase your coverage by a specified amount each annual enrollment without going through medical underwriting. If you elect more than the guarantee issue amount, you’ll have to complete a medical questionnaire or medical exam to be approved for coverage.

Pros and cons of supplemental life

Pros

Usually cheaper than individual life insurance, especially for educators.
Purchase additional life insurance for your spouse and children, capped at 50% of the amount of coverage your purchase for yourself for your spouse and $5,000 or $10,000 for kids.
Usually convertible so you can change your policy into permanent life insurance if you leave your job for a fee.
Take your coverage with you if you change jobs, though your coverage will end if your original employer ends its policy.
Purchase coverage up to a set amount — typically up to $200,000 — without answering any health questions.
Increase your coverage amount — usually by $10,000 — at each enrollment period without answering any health questions.

Cons

Voluntary life does not offer permanent life options, only term life.
You won’t have the option to customize your policy with riders of your choosing, although most school policies include an accelerated death benefit rider and waiver-of-premium rider.
If you decide you want coverage, but didn’t purchase supplemental life within a specified amount of days after being hired — usually 31 days — you’ll have to complete a medical questionnaire to be approved.
Voluntary life rates are based on age and will increase each time you reach a new five year age bracket.

Individual life for educators

If you want or need more coverage beyond what your school offers, you can purchase a term or permanent individual policy through a life insurance company, agent or broker. Choosing an individual term life policy is your cheapest and most straightforward option, offering coverage that lasts a set period of time — like 10, 15 or 20 years. Permanent life insurance includes policies that offer lifelong coverage that becomes a cash asset over time.

Purchasing an individual policy will allow you to purchase as much coverage as you need. Just tally up your assets, debt and financial obligation — like rent or child care — and aim to take out a policy to match. You’ll also be able to customize your coverage with add-ons, such as an accelerated death benefit rider, which pays out early if you’re diagnosed with a terminal illness. And, you won’t have to ensure your policy is portable to take it with you no matter where your career takes you.

How much life insurance do you need?

Downsides to individual life

Generally more expensive. Individual policies tend to be more costly than having a combination of basic and supplemental life. Although, your final premium will be based on your health, which type of policy you purchase and the coverage amount you choose.
May require a medical exam. If you aren’t in the best of health or you’re buying a large amount of life insurance, you’ll likely be required to take a medical exam.

Head-of-the-class tips to getting the best policy

When you’re shopping around for coverage, keep these tips in mind:

Buy a policy that can replace your income. To make sure your family has the money they need to cover their living expenses when you’re gone, aim to buy a policy worth five to 10 times your annual income. So if you earn $50,000 a year, go for a $250,000 or $500,000 policy.
Purchase a policy as soon as you need it. If you have dependents, debts or assets to your name, life insurance can secure your family’s financial future. Premiums increase with age, so try to lock in a low rate while you’re young and healthy.
Choose the right term. Think about your longest financial obligation, and try to take out a policy of the same length. For example, if you have young children or 20 years left on your mortgage, you might buy a 20-year policy. Or if you’re a decade away from retiring, a 10-year policy can provide peace of mind until you start receiving Social Security benefits.
Only buy a policy you can afford. If you fail to pay your premiums on time, your insurer can cancel your coverage. Some life insurance is better than none, so make sure your premiums are affordable before committing to a policy. You can always add more coverage later on — a strategy known as “laddering.”
Review your coverage regularly. Aim to assess your coverage with every major life change — like getting married, having a baby or climbing the career ladder.

Can I still buy life insurance during the pandemic?

Yes. Most insurers are issuing policies, but you can expect to be asked additional questions in your application.

Your insurer will want to know about any pre-existing conditions, especially if they’re related to the respiratory system. They’ll also want to know if you’ve traveled to any areas that have been hit the hardest by the coronavirus, and whether you’re experiencing a fever or respiratory symptoms.

Is the coronavirus covered by life insurance?

Yes. If you have an active policy, your insurer will pay your beneficiaries if you die from COVID-19 or related complications. However, if you die within two years of taking out your policy, your insurer has the right to delay the payout while they investigate your death and confirm its cause.

If you’ve accumulated enough cash value in your permanent policy, you can tap into those funds to cover your medical expenses and other bills.

Another plus: your insurer can’t change your premiums if you’re diagnosed with the coronavirus, either.

Life insurance and pandemics

Who offers life insurance for educators?

Many schools, unions and member organizations across the US provide life insurance for teachers, including the National Education Association (NEA) and American Federation of Teachers (AFT).

A few insurers tailor policies to teachers, including:

Horace Mann Educators Corporation
MetLife
New York Life Insurance Company
Prudential
The Hartford
OneAmerica

Compare life insurance for teachers

Name	Issue age	Minimum Coverage	Maximum Coverage	Term Lengths	Medical Exam Required
Sproutt	18 - 60 years old	$50,000	$4,000,000	5, 10, 15, 20, 25 and 30 years	No	Compare 40+ insurers and apply online to get the lowest possible price — no medical exam required.	Go to site More Info	Compare	loading Fetching your data...
Policygenius - Life Insurance	18 - 85 years old	$50,000	$10,000,000	10, 15, 20, 25, 30 years	Depends on provider and policy	Compare 12+ top insurers side-by-side to get the best possible deal, and shop return of premium policies online.	Go to site More Info	Compare	loading Fetching your data...
Bestow	18 - 60 years old	$50,000	$1,500,000	10, 15, 20, 25, 30 years	No	Get a quote in less than 10 minutes with on-the-spot approval and no medical exam.	Go to site More Info	Compare	loading Fetching your data...
Everyday Life	20 - 75 years old	$100,000	$10,000,000	10, 15, 20, 25, 30, 35 and 40 years.	No	Ladder multiple life insurance policies to save on the coverage you need for all your debts.	Go to site More Info	Compare	loading Fetching your data...
Ladder	20 - 60 years old	$100,000	$8,000,000	10, 15, 20, 25 or 30 years	No, for coverage up to $3M	Apply for term life insurance online without the medical exam. Get an instant decision and adjust your coverage at no charge.	Go to site More Info	Compare	loading Fetching your data...
JRC Life Insurance	18 - 85 years old	$5,000	$50,000,000	10, 15, 20, 25, 30, 35, 40 years to lifetime/age 121	May be required	Compare policies up to $10 million from 45+ top insurance companies with the click of a button.	Go to site More Info	Compare	loading Fetching your data...
Nationwide life insurance	18 - 80 years old	$25,000	$10,000,000	10, 15, 20 and 30 years	Yes	Get term, whole, universal or no-exam life insurance with up to $1 million in coverage.	Go to site More Info	Compare	loading Fetching your data...
Haven Life	20 - 64 years old	$250,000	$3,000,000	10, 15, 20, 25 or 30 years available to those aged 20 - 49 years old. 10, 15, or 20 years available to those aged 50 - 64 years old.	No exams for some applicants	Fill out a quick online application and get approval in minutes with up to $3 million in coverage.	Go to site More Info	Compare	loading Fetching your data...
Fidelity	20 - 85 years old	$25,000	$1,000,000	10, 20, or 30 years	Depends on policy	Purchase term, whole and accidental death coverage online without the exam, with rates starting at a low $10 a month.	Go to site More Info	Compare	loading Fetching your data...
Quotacy	18 - 80 years old	$50,000	$65,000,000	10, 15, 20, 30 and 40 years	Depends on provider and policy	Score the lowest rate on life insurance by comparing no obligation quotes from 14+ companies online. No contact info, no spamming.	Go to site More Info	Compare	loading Fetching your data...
Dayforward Life Insurance	18 - 67 years old	$12,000	$500,000	from 10 to 27 years	No exams for some applicants	Dayforward allows you to protect your family with life insurance that protects your income.	Go to site More Info	Compare	loading Fetching your data...
Fabric	21 - 60 years old	$100,000	$5,000,000	10, 15, or 20 years	Depends on policy	No-exam term policies up to $1 million online, with the option to upgrade to permanent life insurance later.	Go to site More Info	Compare	loading Fetching your data...

Compare up to 4 providers

How to stay safe at school

The American Academy of Pediatrics has put together a comprehensive guide for safe, in-person learning.

These are the key steps schools should take to prevent the spread of COVID-19:

Require all students and teachers to wear a mask during the school day.
Space desks 6 feet apart.
Assign seats to bus riders.
Encourage students to wash and sanitize their hands frequently.
Disinfect desks and computers after each use.
Leave classroom doors open and avoid touching doorknobs.
Allow students to eat outdoors or at their desks, rather than in crowded cafeterias.
Mark hallways with one-way arrows to control the flow of people.
Move activities outside, where possible.
Set up a system where teachers move between classrooms, not students.
Stay home if you feel unwell or have a fever.
Ensure students and teachers are up-to-date on their vaccinations — especially the flu shot.

Bottom line

With schools gearing up to reopen across the US, now’s a good time to assess your life insurance coverage. If you have loved ones who rely on your teaching income, the group policy you have through work may not be enough. But you can top up your coverage by purchasing a policy on your own, and dip into any cash value you’ve built in your permanent policy to pay surprise bills.

Life insurance is part of a healthy financial plan. While you’re in planning mode, compare life insurance companies to get the coverage you need at the lowest possible price.

Frequently asked questions

In addition to group life, your school district may also offer these employee benefits:
- Disability insurance. You may be offered short term disability or long term disability, and sometimes a combination of both.
- Accident insurance. Offers a payout to help you cover expenses after an accident.
- Hospital indemnity insurance. Helps cover medical costs that your health insurance may not cover.
- Dental insurance. Pays a portion of your dental care costs.
- Vision insurance. Pays a portion of your vision care costs.
- Telehealth. Provides services that offer medical care online using a phone, mobile app or online patient portal.

Thank you for your feedback!

Katia Iervasi

Katia Iervasi is a staff writer who hails from Australia and now calls New York home. Her writing and analysis has been featured on sites like Forbes, Best Company and Financial Advisor around the world. Armed with a BA in Communication and a journalistic eye for detail, she navigates insurance and finance topics for Finder, so you can splash your cash smartly (and be a pro when the subject pops up at dinner parties).

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