If you are relying solely on your employer-provided Group Life Insurance, it more than likely will not be enough to protect your loved ones in the long term in the event the unexpected happens. While employer-provided group life insurance can be a great benefit to have, it may not provide enough coverage for all of your financial needs.
One of the biggest drawbacks of employer-provided life insurance is that it typically only provides coverage equal to one or two times your annual salary. For example…If you make $50,000 a year…You would have the option to purchase $50,000 to $100,000 coverage. Realistically, how long could your family make ends meet with $50,000 to $100,000 coverage if something happened? The paycheck they rely on will stop coming in but, the regular monthly bills will not.
One maybe two years at best, what would happen then? This is why so many families with the loss of a loved one struggle to make ends meet financially. This amount of coverage may sound like a lot, but, more then likely it will not be near enough. Remember…Your income will not be coming in any more to help support your family and, the reason why the right amount of life insurance coverage or a “Safety Net” should be in place to help protect them.
Another issue with employer-provided group life insurance is that you may not be able to customize the policy to meet your specific needs. For example, you may have a child with special needs who will require long-term care. In this case, you may need a policy with a much larger death benefit to ensure that your child will be taken care of if the unexpected where to happen.
Here a question that far too many people never realize to ask: What happens to my group life insurance coverage after I leave my current job or retire?
Once you leave the organization, group life insurance terminates (either immediately or after a short grace period). This includes being fired, quitting, changing jobs, or retirement. This can be especially problematic if you have developed health issues or have become uninsurable since you started your job and took out this group coverage. You may not be able to purchase additional coverage or may have to pay a much higher premium if you have health issues once you leave your employer.
All of these factors make it clear that relying solely on your employer-provided life insurance policy will not be enough to protect you and your family. We recommend to ensure that your loved ones are taken care of in the event of death, it’s important to explore your options and consider purchasing an individual life insurance policy away from work that meets your specific needs.
Here is how our agency can help you: We are an “Independent Life Insurance Agency” which means we work for you not the insurance company. We represent more then “10” different Life Insurance Companies that we shop and compare rates with. Contact our office today to request a “Free Consultation” to discuss what plan options are available for you.