The death of a loved one is a particularly painful experience. And if the emotional distress wasn't hard enough, there may be financial strain as well. The surviving spouse/partner is suddenly single, alone and grieving, and may still have dependent children at home to support. In these kinds of situations, a financial windfall can be a real blessing. And this is precisely what a group insurance plan with death benefit coverage can do for you.
Death benefit coverage is a form of life insurance that your employer can add to your group insurance plan. In your pension plan regulations, your employer will specify the pre-set amount that will be paid out to your beneficiaries if you should pass away before you retire.
To fund this death benefit coverage, employer contributions will be made towards your death benefit proceeds (in the form of a "Death Benefit premium") on top of the usual group insurance contributions ("Retirement premium"). In some cases, your employer will allow you to set your death benefit coverage level yourself. If so, you can choose between building a bigger nest egg for yourself (Retirement benefit) or providing your beneficiaries with a bigger windfall in the event of your death (Death benefit).
Although it's increasingly common, not all group insurance plans come with death benefit coverage. Not sure whether your group insurance plan includes death benefit coverage or not? To find out, log in to My Global Benefits, or check with your HR department.