Some employers will offer life insurance as part of their employee benefits packages. Getting life insurance through an employer may even seem better than getting a policy on your own because employer-sponsored plan premiums are usually low and affordable. But with this comes its drawbacks, and even if you already have life insurance through an employer, you may want to consider obtaining a policy on your own.
What Are The Risks Of Having Life Insurance Solely Through An Employer?
Having life insurance from no other source than your employer is risky. Your status as a policyholder is contingent on your employment and your employer’s decisions.
Life insurance through an employer will more than likely require you to maintain full-time status to keep this benefit. If your hours get reduced, then there is a chance you will lose your policy. And cutting ties with your employer, whether it be from termination or switching to a different job, will cause you to lose your policy.
But losing life insurance coverage through an employer doesn’t always have to be the result of your relationship with the company you work for. It could come down to your employer severing ties with the insurance company, and if your employer opts out, you (along with other employees) will lose coverage.
If you get life insurance from no one other than your employer, you’re relying on a future where your employment status doesn’t change and one where your employer will not decide to opt-out of the policy.
Why Should I Get Additional Life Insurance?
Getting a policy of your own in addition to the life insurance you have through an employer gives you more freedom and a bigger safety net. With a policy of your own, you can decide exactly how large of a policy you want. This policy won’t come out from under you unless you cancel coverage or stop paying premiums.
One of the biggest reasons individuals add life insurance despite having policies from their employers is because they have more people to support. The life insurance from your employer may not be enough to cover the needs of your spouse and children if you were to pass away. This is especially the case if you’re also in the process of paying a mortgage.
And finally, it’s encouraged to get additional life insurance outside employment because you may be able to find a better deal elsewhere. There are a near-infinite number of life insurance policies to compare and choose from. You can get a policy of your choice, but ideally, it should be one amounting to ten times your current annual salary.
Get Life Insurance You Can Count On
We at Secure Insurance Group will find you a life insurance policy that fits your exact needs. We offer a wide selection so that you can find exactly what you need, so you can give your loved ones the legacy they deserve. To learn more, call us today at 1-877-871-7328.