Can You Count On Your Job For Life Insurance?

Life insurance is something most people don’t like to think about, so it’s an added bonus when a term life policy is offered through your job. The HR department did all the legwork, and you just had to sign up.

But how much do you really know about your policy?

Group Life… Gone In An Instant?

The life insurance policy you get through your job isn’t exactly yours. It’s in your name, but it’s up to your employer to keep offering it. If they decide it’s too expensive, they can cut it without notice.

And if you lose your job or the company tanks? Your policy goes with it.

Does Your Policy Cover Enough?

The amount of life insurance varies from employer to employer. Some people get 1 – 3 times their yearly wages, others get drastically less. That falls far short from the widely recommended 5 to 10 times your annual salary — an amount that better guarantees your family is well provided for.

Is An Individual Life Insurance Policy Right For You?

An individual life insurance policy will supplement what’s offered through your job. You can also ask your HR department if your group life insurance company allows you to buy extra coverage through them.

A policy you purchase on your own is yours as long as you pay the premiums on time, ensuring it’ll be there if ever you need it. Plus, you’re in control of the dollar coverage, so you can buy enough to meet your family’s needs.

The first step? Review your current life insurance plan through your job. This will give you an idea of how large a gap you may need to fill.

You can find a life insurance policy by working with an independent insurance agent or broker. They can compare policies from several companies and find the one that offers the best prices for you.

If you’re considering buying additional coverage through your employer, make sure you’ve compared the rates offered to those a broker can quote you. It’s very common to find greater savings by purchasing outside of your job.