With more towns and counties dealing with tight budgets, one of the biggest changes local governments are making is to scale back on offering employee life insurance.
One such instance of these changes is in Coshocton County, Ohio, where the cost of health and life insurance is expected to rise to 12 percent every year according to the Coshocton Tribune. This increase is compared with a 3 percent rise over the last three years, said one county official, who noted that the increase isn’t due to increased premiums, but rather an increase in the number of employees and former employees not paying into the system.
At the same time, the county says it will have to pay its life insurance provider more now than it did this year to oversee all its claims, the paper said. That increase will depend upon the dollar amount of claims filed the year prior, as well as administrative costs, an official told the newspaper.
Coshocton is just one of many governments tightening its belt by changing life insurance coverage, which in some cases means eliminating it completely. It is for this reason that government employees should strongly consider getting their own life insurance policies to ensure their loved ones are provided for in the event of an untimely death.