We get this question all of the time! Clients will come to us and tell us, “oh, I don’t need life insurance, I have it through my employer.” Well, as financial professionals, we know employer life insurance isn’t always the most comprehensive nor is it guaranteed. Although it can be affordable, guaranteed issue, and convenient, there are a few things to think about when you choose not to obtain a separate life insurance policy.
1.) What if you change jobs? When you leave your employer, the life insurance coverage ends. You don’t get to take the coverage to your next employer. Also, what if your next employer doesn’t offer life insurance?
2.) What if you work past the specified age, or you retire? Some employers will only provide benefits up to a certain age, so if you work past that age, or you retire, you coverage will end; this is the time you need it the most!
3.) What if your employer chooses to terminate employee benefits? With the rapid changes in healthcare, a lot of employers are choosing to drop employee benefits and just pay a higher wage.
4.) What options are there in employer-sponsored life insurance? Most of the time, there are no options. They offer one type, one amount, and one insurance company. The life insurance coverage is not tailored to your needs!
It is always important to have your own life insurance policy, whether or not you have one through your employer. If you’d like to know more about a life insurance policy that is tailored toward your needs, doesn’t lapse, and is still affordable, please contact our team of professionals at Journey!