Before You Buy Life Insurance At Work, Consider This

Among the many benefits your employer offers, you might find that they offer a group rate life insurance plan. While they mean well, it's essential for you to buy your own policy directly from an insurance company or broker. Even if your company provides this life insurance policy free of charge, it's still in your best interest to have an outside policy. Here's why. 

You Will Leave Your Employer At Some Point 

Whether it's a better offer elsewhere, a lay-off, or retirement, you're bound to quit someday. No one knows when that is, but unlike your 401k (which can go with you), this benefit can't. Your policy will likely be canceled on your last day. A policy you buy on your own will follow you forever. You might as well get it now rather than wait. Five years from now you'll be older and more expensive to insure. 

The Value Isn't High Enough 

Many companies offer polices of under $100,000, which isn't enough to care for your dependents in your absence. The rule of thumb is to get a policy that has a value which is 10 to 12 times your annual salary. Also, your partner should have life insurance coverage on their income. For those who are stay-at-home parents, $500,000 is a good amount to go with. 

You May Develop A Health Problem That Makes Coverage More Expensive 

No one likes to think about this, but humans tend to experience poorer health as they age. While a $50,000 policy that your company offers is nice, it's not enough to leave to your partner and children if the worst happens. If your declining health forces you to leave your job, you will either be paying a lot for coverage or unable to get a new policy. These days, cancer survivors can sometimes get coverage. But, if you're in the midst of chemo, no company will insure you. 

Term Life Insurance Is Very Affordable 

Most people are well-served with a term life insurance policy. Healthy people in their 20s and 30s will likely pay less than $50 a month for a policy. That's roughly equal to dinner and drinks for two at a casual restaurant or a fast food dinner for a family of four. 

Contact us today to get yourself set up with a life insurance policy that will be able to provide for your loved ones.