Does your employer offer life insurance?
If you are taking advantage of it, good for you. It’s a convenient way to get life insurance and provide peace of mind to you and your loved ones. But is that coverage enough? Source: NLG
HERE ARE SOME THINGS TO KNOW ABOUT EMPLOYER OFFERED LIFE INSURANCE:
With a group life insurance policy you do not have to go through underwriting as an individual. You get the group rate. This is a plus if you have any health conditions that might make life insurance more expensive to buy. Typically, employers will offer a certain amount of life insurance coverage for free and then allow you to buy additional life insurance coverage.
IT MAY NOT TRAVEL.
Be aware that if you leave your company, you may be leaving behind your group life insurance coverage as well. Depending on the company that issues your employer’s group life insurance, you may have the option to convert the group term policy to a permanent life insurance policy with the same carrier that would be portable. So if you plan to leave your current employer, or think you may down the road, you may want to explore your options to convert your group policy, or consider getting an individual life insurance policy. Keep in mind that that cost of insurance rises as you age, so it doesn’t hurt to plan ahead.
IS THE FREE COVERAGE ENOUGH?
Understand what the free amount of life insurance offered by your employer would cover. Be sure it is enough to meet your needs. Not sure if you have enough life insurance?
You may want to consider signing up for more coverage. Keep in mind, if you are in excellent health, or young and in excellent health you may qualify for a better rate than the group rate. So it doesn’t hurt to compare the rates of your work’s group policy with an individual policy.
IS THE TYPE OF LIFE INSURANCE RIGHT FOR YOU?
Typically employers offer term life insurance, which provides life insurance protection for a specific period of time. There may be an option to convert a term policy to permanent life insurance, or there may not. So do your homework to understand what type of life insurance makes sense for you.
DON’T JUST SET IT AND FORGET IT.
You may find your life insurance needs change over time—especially if you have a major event in your life, such as getting married, having children, starting a business and getting divorced—so be sure to assess your needs on a yearly basis.
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