Employer Life Insurance Benefit or Individual Life Insurance or Both?

Being Promoted

Should you have your own individual life insurance policy or opt-in to group life insurance offered through my employer? In my opinion, you should carry both of them. If it is offered as one of your employee benefits, I would recommend taking advantage of it. I personally have both.

Employer life insurance is sometimes referred to as group life insurance. Some employers offer group life insurance coverage depending on the size of the company. They sometimes will offer up to 1-3 times your salary in coverage. This is often paid by the company. However, sometimes a portion is paid by the employer and the balance is paid by the employee.

With employer life insurance, rates are based on the entire group as a whole, not on each individual’s health factors. When you leave your employer, your benefits usually end at that point, leaving you without any coverage. There are some group life insurance companies that will let you take your policy when you leave and this is called portable coverage. The price is usually higher than the group rate.

This brings me to why I feel that having both the coverage from your employer and your own individual life insurance is very important. If you have your own life insurance you still have coverage while in between jobs. Did you know there can also be a waiting period before benefits at your new job kick in? With your own life insurance you are covered and you have more options, including the amount of coverage you can carry.

I hear all the time; I am all set as I have life insurance coverage through my employer. Well, that is a good first step that you have coverage through work, but don’t you want the additional peace of mind of having your own coverage? Don’t you want to know that when you are not working, your family will be taken care of if something were to happen to you? Please give me a call at 1-800-651-1953 and let’s talk about your back-up coverage. I can get you a free life insurance quote and get you started today.

About the author: Pam Fortier has been in the life insurance business for over 30 years. She also holds both a LUTCF designation and a CISR designation. Pam is adept at helping clients select the coverage they want at the price they can afford. You can contact Pam at 1-800-651-1953 or PFortier@Pivot.com.