One of the perks of having a full-time job with a good company is
the benefits package that comes with it. Often, those benefits
include life insurance coverage, which is great. And everyone who
can get life insurance at work should definitely take it, as there are
many advantages to company-funded life insurance, also known
as group life insurance.
These advantages include…
1. Easy qualification.
Often, enrollment into group life insurance is automatic. That means
everyone qualifies, as there is no medical exam required. So people
who have preexisting health conditions, like diabetes or previous
heart attack, can get life insurance at work, and may get a better rate
compared with what an individual life insurance policy might cost them.
2. Lower costs.
Employers’ insurance plans tend to be paid for or subsidized by the
company, giving you life insurance at a low cost or even free. You
may even have the option to buy additional coverage at low rates.
Costs tend to be lower for many people because with group plans,
the cost per individual goes down as the plan enlarges.
3. Convenience.
It’s easy to subscribe to an employer’s life insurance plan without
much effort on your part and if a payment is required, it’s easily
deducted from your paycheck in much the same way as your
medical costs are deducted.
These are all great advantages, but are these the only considerations
that matter when it comes to life insurance? The answer, of course,
is no.
Life insurance should first and foremost fit the purpose… it should meet
your needs. And the primary purpose of life insurance is to care for those
left behind in the event of your death. With group life insurance, it’s often
set at one or two times your annual salary, or a default amount such as
$25,000 or $50,000. While this sounds like a lot of money, just think of
how long that would last your loved ones.
What would they do once that ran out?
There are several other disadvantages to relying on
group insurance alone…
1. If your job situation changes, you’ll lose your coverage.
Whether the change results from being laid off, moving from full-time to
part-time status or leaving the job, in most cases, an employee can’t
retain their policy when they leave their job.
2. Coverage may end when you retire or reach a specific age.
Many people tend to lose their insurance coverage when they continue
working past a specified age or when they retire. This means losing your
insurance when you need it most.
3. Your employer can change or terminate the coverage.
And that can be without your consent, since the contract is between
your employer and the insurer.
4. Your options are limited.
This type of coverage is not tailored to your specific needs. Furthermore,
you may not be able to buy as much coverage as you need, leaving you
exposed.
It’s for these reasons you should get an individual life insurance policy
that you personally own, in addition to any group life insurance you have.
Individual life insurance plans offer superior benefits, and regardless of
your employer or employment status, they remain in place and can be
tailored to meet your needs and circumstances.
Most importantly, an individual life insurance policy will fit the purpose
for which you purchase it… to ensure your dependents continue to have
the financial means to keep their home and lifestyle in the unfortunate
event that you’re no longer there to care for them.
- Frank Medina
https://lifehappens.org/blog/i-have-life-insurance-through-my-employer-why-do-i-need-another-policy/
As an independent Agent I recommend some whole life coverage for
Everyone to take care of final expenses purchased privately that the
Client is in control of for peace of mind.
Statistics indicate that a very small percentage of employers provided
Work-site term life coverage is ever claimed on for death benefits.
“The grief is bad enough,
Don’t leave the burden
To your family!
I STILL MAKE HOUSE CALLS!
Hayden Childs
Alabama Licensed Agent
(205) 269-1382
shcmail34@yahoo.com
www.haydenchilds.net
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