Employers often offer the option of life insurance to their employees as part of a well-rounded benefits package. While this is a great idea for someone who has very little financial responsibility and no family that relies on them, it may be a bad choice for a homeowner with a family to support. Before signing up for a life insurance policy through your employer, you should do a little research and find out the pros and cons of getting life insurance through your employer.
You Don’t Need A Medical Exam
One benefit of signing up for your employer’s life insurance offer is that you won’t need to get a medical exam to qualify. You are eligible for the policy simply because you are part of a group of employees who are opting to purchase the policy. Buying as a group offers many benefits to the group as a whole as well as to every individual who chooses to participate in the plan.
The Policies Are More Affordable but They Are Also Risky
Because your employer signs its employees up as a group, they get a greatly discounted rate. The more people in the group, the lower the premiums will be. In some cases, your employer may pay for the entire policy meaning that you pay nothing for your coverage. The downside to this type of payment option is that your employer can drop the policy at their discretion without warning you before canceling it.
You May Not Get the Coverage You Need
While employer group life insurance is both affordable and convenient, the policy may not provide you with the benefits you need to secure your family’s future if they lost access to your income. Because the employer life insurance is a group of individual policies, each policy is exactly the same as the others. This may work for someone who is single but individuals who are supporting a family may find this type of policy lacking in the financial compensation that would be needed if the unthinkable happened.
Buying Supplemental Insurance Could Cost You More
One of the biggest issues many people face with insurance policies offered by their employer is that the supplemental policy they have to purchase ends up being incredibly expensive. The supplemental policy may be more expensive than if you had chosen to purchase a personal life insurance policy on your own. If the policy offered by your employer is free, you can participate in the program but buy your own life insurance policy outside of the company. This way you will get the benefits from both policies without having to pay extra.
You Have Limited Options
Another drawback of an employee group life insurance policy is that your options are limited. Because the policy is part of a group, they are all written the same and you don’t have options to choose from. It’s similar to a “one size fits all” piece of clothing. Anyone can use it but it may not be what everyone needs. If you want a policy you can customize, you will have to invest in one from an outside insurance agent.
Being included in a group life insurance policy offered by your employer can be great, but a personal policy will ensure you have the life insurance you need. To know more about the procedures and to get detailed information about the personal insurance policies, contact Weaver & Associates today. We are ready to assist you with all your coverage needs.
