If you recently changed jobs, you may have a chance to acquire a life insurance policy through your employer at little to no cost. Sounds great, right? You may want to take a look at the fine print, however, before you accept this policy as your only policy.
‘One Size Fits All’ May Not Fit Your Life
The policy you get through work is usually a one-size-fits-all policy that’s offered to every eligible employee of the company. This type of life insurance is commonly referred to as “group life.” Employees are either automatically enrolled in a group policy with their company or are given the opportunity to purchase coverage.
Depending on where you work, this employee life insurance coverage may not be enough. Coverage amounts are often low, ranging from $25,000 to a multiple of your annual salary. Plus, life insurance from an employer usually doesn’t come with options to customize your coverage. After reading the fine print and considering your situation, you may discover that it will not cover your family’s needs if the unthinkable happens.
The Pros and Cons of Employer Life Insurance Policies
We don’t recommend that you opt out of your employer’s coverage. Getting group life insurance through your job has its advantages, including:
- Convenience – Getting coverage is sometimes as easy as filling out forms as part of your hiring process.
- Price – Basic coverage is often free for employees.
- Acceptance – Because most plans through your employer are guaranteed, you can qualify even if you have a serious medical condition.
That said, there are some disadvantages to this type of coverage as well, including:
- Coverage is tied to your job – If you leave your job, you may not be able to take the policy with you.
- Limited choice – Your employer likely works with one carrier, and your coverage may be limited.
- Low coverage amounts – Again, you may not be able to purchase as much life insurance as you need through this type of plan.
You Have Options for Additional Coverage
We know that every family is different, and we believe that life insurance should be personalized to your family’s needs.
Purchasing a term life policy outside of your job will allow you to decide on the amount of coverage you need for a set period of time. This could be a simple way for you to “top up” on what you have at work and gain adequate coverage.
Don’t know where to start? We can help you determine how much extra coverage you’ll need and choose the best term policy.
Do You Need to Speak with a Life Insurance Professional?
During these challenging times, the team at Low Cost Life Insurance is here for you. If you have questions about a policy, please call at 1-877-794-TERM (8376) or visit our website. We hope you and your family are well, and we look forward to speaking with you soon.