People often avoid getting life insurance despite how important it is. It is mainly because life insurance is thought of as very complicated, expensive, and not essential. However, the reality is different. If you are employed at some company, you usually get an employer’s life insurance. This life insurance is a part of the employment package you receive from the company. Employers buy group life insurance to provide all employees with limited coverage. People tend to rely solely on this for coverage. However, that should not be the case because of some reason. Here are a few reasons why you should not rely on the employer’s life insurance;
Not Enough Coverage
Group life insurance, especially a term one, is bought because they are affordable option for employers. It gets easier for them to provide insurance to all their employees. This means that the coverage provided is not enough. A general rule is that your insurance coverage should be much more than your salary so that in case you die, your family is supported financially. But this is not the case with the group term life insurance. It hardly provides much financial assistance as it covers costs related to a funeral or immediate expenses. So if you have a family and want better protection, make sure that you have a good life insurance policy other than the group one!
A significant reason you shouldn’t solely rely on your employer’s life insurance is that it will end the moment you leave the job. It will be there for coverage as long as you are working with that company. So if you want to continue it, you will have to continue your job, and hence it is not a very convenient option. At times, you can convert the group life insurance into an individual one; however, the premiums are way too high in such a case. So the best thing would be to have your policy.
Imagine this situation. You are a young adult working in a company that is providing you with group life insurance. You quit your job after spending a substantial amount of time there. By the time you resign, you are comparatively old now. So once you quit the job and lose the employer’s insurance, now you need to find an acceptable life insurance policy for yourself. So, the insurance provider will now take into account your age and medical conditions at the moment. Considering how we are more prone to diseases and other risks with age, life insurance policy gets more expensive. So the whole waiting period between quitting the employer’s life insurance and getting your own can be a bit tough.
With time, many changes take place in your life. Be it marrying the love of your life, having children, or any other such milestone. With every significant event that happens in life, you might have to think about changing your coverage. This option is not available in a policy provided by your employer’s life insurance. So, to get the best coverage in every regard, make sure that you get affordable life insurance on your own.
A life insurance policy provided by your employer might look like a feasible option, but in reality, it is not. If you are planning to rely on it solely, keep in mind that it will not be there as soon as you leave that particular job. It will also not provide enough coverage in many cases. So to make sure that your family is getting enough financial assistance in your absence, sign up for an excellent and affordable life insurance policy now!