What's New This Month:
Life Insurance: How to know if you have Enough
When it comes to life insurance you cannot have enough. But, obviously there has to be an upper limit, right?
This is the most common question when it comes to life insurance, and a lot of different people have a lot of different answers. The way I see it, there are a couple of ways to approach this problem, but first you’ll have to answer some questions.
What do you want Life Insurance for?
The #1 goal of life insurance is to replace your income. That’s what everyone says, but what does that mean?
Replacing your income could be actually providing 5-10 years of actual income or by providing enough money to earn that income via investing. If you can earn 3-4% interest per year on an investment, $100,000 of life insurance becomes $250 a month for your family.
Another question is how long will you need to provide for your family? If you want to replace your income until your kids graduate college or until the mortgage would be paid off, you’ll need to do the math and figure out exactly how many years that will take.
What Existing Debts/Bills does your Paycheck Cover?
Take the time to look into your debts, such as a mortgage, college tuition for your kids, car loans, your partner’s student loans (your student loans are forgiven when you pass), credit card debt, and other expenses (e.g. medical debt, funeral expenses, and anything else you might pay/owe). Your life insurance should ideally cover your loved one, if not completely, then well enough that they can handle it on their own if you pass.
What to Expect from SDPEBA this Year!
Hello SDPEBA Members!
Happy 2023! As we settle into our new website, we wanted to take a second and update you on our plans for this year.
New Content - Surveys
You might have noticed in the December Newsletter that we included a survey about Open Enrollment! We plan on including a 3-4 question survey in each newsletter going forward. What are these surveys for? Basically, your responses to these surveys are to help us understand what we can do for you!
For example, this month’s survey is about Life Insurance, one of the questions is “Do you know how to calculate how much life insurance you need?” If we have a lot of “no’s” to that question, then we’ll write an article about it! We also plan to use surveys to reflect on events and to get feedback from you.
How to Start using Your Plans
Now that it's January, your plans have officially begun! That means it's time to start making the most of them. Here are some quick tips to get started.
Aflac
You don’t have to do anything to set up Aflac. Once the plan starts, that’s it! It is, however, important to know when and how to file a claim.
You’re able to file a claim for a qualifying event as long as it happened during your coverage window, (note, the accident plan only covers accidents that happened while you are enrolled, whereas your hospital and critical illness plans cover doctor visits while you are enrolled). Any time you go to the doctor/hospital, be sure to check your Aflac brochure to see if you experienced any qualifying events.
Do you need Life Insurance After You Retire? - Road to Retirement
Life insurance is (usually) designed to protect your family if a worst-case scenario happens and you lose your income. Since that is the primary reason to get life insurance, what happens when you retire and you suddenly don’t have an income at all?
This is a surprisingly complicated issue, and there are a lot of factors at play as to whether you should keep paying for life insurance. But to make a complicated question simple, the short answer is probably! You should probably keep getting life insurance. For a more complicated answer, read on.
Are you Still Working?
If you are still earning an income, then it is a good idea to keep life insurance. That way if you were to pass away, that income can be put toward bills, expenses, and anything else that your income was already covering.
Benefits that are Available Year Round
Missed OE but wanted to add some benefits? Well, you’re in luck. Some of our plans have “year round enrollment,” meaning you can sign up for them at any time during the year.
The plans available for year round enrollment are as follows:
Aura Identity Guard – Identity Guard protects your data online. Want to stop spam calls, keep your kids safe while they browse, or just make sure you’re covered in case of Identity Theft? Aura has you covered.
Learn more about the plan by clicking here. Or email info@SDPEBA.org to sign up.
Liberty Mutual – Liberty Mutual offers discounted group rates to all SDPEBA employees, whether you want home, auto, renters, or umbrella insurance, they’ve got you covered.
Life Insurance Survey -
Do you Have Enough?
Do you have questions about life insurance? We know life insurance is complicated! And while your work provides you with some coverage, but it’s often not enough. Take this quick 2-minute survey and let us know how much you know!
By taking this survey you’ll be entered into a raffle where you can win $50! We’ll host a new raffle every month, so be sure to be on the lookout for more in the future.
Free College! Enrollment is open Now!
The San Diego College of Continued Education is San Diego’s premier free and flexible education platform! SDCCE has just opened enrollment for the Fall session! If you’re interested in learning career skills, useful life skills or would like to sign up for their senior Emeritus courses, now’s the time to get started!
What is SDCCE?
SDCCE is a string of 7 colleges that are part of the San Diego Community College network. They offer ESL classes, GED programs, and most importantly, vocational training. Last year, Will Stover sat down with Tavaris Franklin, an SDCCE rep, and broke down the basics of what the college represents and does! Some of the dates in this video are from 2021, but the information is still great!
About Us
The San Diego Public Employee Benefit Association is a partnership of unions and associations designed to help reduce costs, improve benefits, and enhance support for San Diego’s public employees. We’re here to answer your questions and help make sure you get the most out of your benefits while also advocating for you directly to the provider to make sure you get the best experience possible.