Reasons why to Opt Out of Benefits

In the video, I go over exactly who is eligible for Pension, Health, and Life/Disability benefits in the Global Methodist denomination. In the Useful Links, you will find links to get you to the enrollment or waiver forms.

In the rest of this post, I’m going to list some valid reasons to opt out of each type of benefit. One reason that I’m not listing but don’t want to ignore is if the Holy Spirit is guiding you to Opt Out. I doubt this is common, but I wouldn’t want to discount it.

Opting Out of Life & Disability Insurance

  1. You Hate Everyone: If you hate your family and your church, that might be the only reason to opt out. Most people assume death is the worst, but, financially speaking, becoming permanently disabled can be the worst (again I’m speaking financially). Protecting against long-term disability is not easy. Do you have enough in savings to replace a lost income plus cover the increased medical costs? Disability coverage will protect your family if you have folks that depend on your income. It will equally protect your church. The vast majority of Global Methodist churches would do almost anything to care for their pastor when tragedy strikes. Life & Disability coverage costs about $1,000/year which is pretty cheap versus the alternative of trying to support a pastor who can no longer serve because of disability.

Opting Out of Pension

  1. Already Wealthy: Maybe pastoring is a second career where you already earned enough to retire. Maybe you inherited some wealth. Maybe you won the lottery. If you are already set for retirement, that would be valid reason to opt out.
  2. You Hate Everyone: There will likely come a day when you are physically or mentally no longer able to work. Age will have finally won the battle. If you have not saved up for retirement, does that mean your spouse will be forced to work extra to make up the loss of income? Does that mean your church will feel like they must keep paying you to be the pastor even if you can no longer fulfill the duties? Neither of these sound like good options.

Opting Out of Health Insurance

  1. Covered because of Military Service: If you have TriCare or Champus, you can waive coverage.
  2. Covered by Medicare or Medicaid: For those in Medicare, you will be required to affirm that the church or denomination is not pressuring you to waive coverage. This is your choice.
  3. Coverage through Spouse’s Employer: There are sometimes extra costs involved with your spouse adding you to their coverage. If a church decides to help cover this extra cost, a non-taxable way to help would be through QSEHRA.
  4. Covered through Former or Current Employer: Some large employers, usually government entities, may continue to provide health benefits after the employee moves on…usually through early retirement. If that’s your case, you can waive coverage.

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