Do you currently receive life insurance coverage through an employer sponsored plan? This is a great benefit that millions of people take advantage of. Even though some companies are cutting this out of their benefit package, there are many that still strongly believe in this.
Even if you currently have a policy through your employer, it is important to remember this: you should also purchase a policy on your own. If you don’t, you are taking a big risk.
Here are three reasons why you need to buy another life insurance policy in addition to any coverage that you receive through your employer:
1. Just as Affordable – And In Some Cases it Can Be Cheaper
Are you happy with how much money you are paying for your group coverage? There is nothing wrong with continuing to make this payment. In fact, some companies offer employees a policy free of charge.
You may be surprised to find that insurance you buy on your own is more affordable than what your company charges. The reason for this is simple: more flexibility. When you buy through a group sponsored plan you don’t typically have many options. However, when you buy on your own time you open up a world of opportunities.
2. More Coverage May Be Required
Simply put, if you are not able to buy enough life insurance through your employer you need to fill the gap on your own. Only you know how much coverage you need as well as what your employer is offering.
3. You Never Know When Your Employer Sponsored Coverage is Going to Come to an End
For example, what is going to happen if you lose your job? This is an unfortunate situation that many people are dealing with. When your job goes away so do your benefits, including life insurance coverage. While it is possible to buy a new policy on your own, you may find it challenging to qualify for a low premium – especially if you are older and/or have health concerns.
Also, you will not typically receive this benefit once you retire. This is a benefit that is left behind once you hang up your work boots.
Tip: when purchasing life insurance through your employer, ask if you are able to convert to an individual plan upon retirement. If possible, this will make things much easier on you.
These are three of the best reasons to buy an individual life insurance policy to go along with any coverage that you receive from your employer. Can you think of any other benefits of doing so?
If you have any questions regarding your current coverage and what you need in the future, you can speak with two people:
- Your HR benefits representative
- A qualified life insurance agent in your area
Your HR contact can answer questions related to your group sponsored plan while a local agent can help you learn more about purchasing additional coverage.
It does not really matter how you buy life insurance. What is most important is that you get the right amount of coverage at the right price.