One of the perks of working in a good company is having benefits of group life insurance coverage, which is great. Everyone who can get life insurance at work should definitely take it, as there are many advantages to company funded life insurance. Some of these are the following:
1. Easy qualification
Enrollment to group life insurance is automatic. This means everyone qualifies with out medical examination. Regardless of medical condition, you can have a life insurance at work.
The company will do all the documentation. There is not much effort on your part.
Employer’s insurance plans tend to be cheaper because, with group plans, cost per individual goes down as the plan enlarges.
These are great advantages but what are the disadvantages of relying on a group insurance alone.
When you retire you lose your group life insurance coverage. And you lose your insurance when you need it most.
2. When your job situation changes
Regardless of the reason, being laid off or leave the job, you lose your group life insurance from your employer.
3. Employer can change or terminate the coverage
For whatever reason, the employer can do this with out your consent as the contract is between them and the insurer.
4. Limited options
This type of coverage is not tailored fit to your specific needs and may not enough for your needs.
Life insurance first and foremost should meet your specific needs. It is for this reason you should get an individual life insurance policy that you personally own in addition to group insurance that you may have.
Individual insurance offers superior benefits and will remain in place regardless of your employer or employment status.
Individual life insurance policy should fit the purpose for which you purchase it:
1. Income replacement
2. Education expenses
3. Pay off debt and other expenses
4. Medical expenses
6. Funeral expenses
7. Take care of business
8. Give to charity
9. Pay off estate tax
10. Create a legacy
11. Diversify investment
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Disclaimer: This website reflects only the views and opinions of the author and is not part of any official communication tools of any life insurance and investment company. The views and opinions on this website do not necessarily reflect those of the company, the management, the advisor/agents and the employees of any insurance or investment company.