Term Life Insurance Articles
The Need For Independent Life Insurance Coverage In Addition To Employer Coverage
2010-07-29
There are many sources though which a person can obtain life insurance. In many cases, employers offer some form of group life insurance, which is insurance made available to a pool of applicants who belong to a specific society or company and which may not be risk-based. There are also independent insurance options known as whole life and term life insurance, which both require an application process. If a candidate applies for term life insurance, for example, the insurer will provide him or her with term life insurance quotes based on the applicant's risk level. That term life insurance quote will likely increase as the candidate ages or experiences certain life events or illnesses. Group coverage is a convenient life insurance option, especially because it usually is offered at reduced prices and does require a medical exam. However, it has disadvantages as well. Regardless of whether or not a person has the option to choose employer-provided health insurance, there are several reasons that it wise for him or her to get independent life insurance coverage in addition to that provided by the employer.
One reason is that the group coverage only exists as long as the individual is employed at the company. When a person changes jobs, the money he or she put into their previous company's life insurance policy disappears as well. Employer-offered group life insurance rates may be offered at low rates, however those rates tend to increase every year.
Another reason is that employer-offered insurance is designed to help as many employees as possible. Each person's coverage is the same, even though everyone may have different health coverage needs. As a result, employees run the risk of not receiving their optimal coverage.
One advantage of obtaining independent life insurance coverage is that the insured often has the option to receive certain tax breaks from purchasing their own whole or term life insurance plans that are not offered with employer-provided group insurance.
An additional benefit about independent life insurance is how easy it can be to get. Today, people have the option to use online tools or access call centers in order to obtain whole life and term life insurance quotes. Indeed, some representatives are willing to take the time to explain how the whole or term life insurance quote is derived. Those explanations may not exist in a group life insurance scenario.
No matter what, people need to have some form of life insurance. For many reasons, it is recommended that each person obtain independent life insurance even if they opt to use their employer's group life insurance coverage as well.
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There are many sources though which a person can obtain life insurance. In many cases, employers offer some form of group life insurance, which is insurance made available to a pool of applicants who belong to a specific society or company and which may not be risk-based. There are also independent insurance options known as whole life and term life insurance, which both require an application process. If a candidate applies for term life insurance, for example, the insurer will provide him or her with term life insurance quotes based on the applicant's risk level. That term life insurance quote will likely increase as the candidate ages or experiences certain life events or illnesses. Group coverage is a convenient life insurance option, especially because it usually is offered at reduced prices and does require a medical exam. However, it has disadvantages as well. Regardless of whether or not a person has the option to choose employer-provided health insurance, there are several reasons that it wise for him or her to get independent life insurance coverage in addition to that provided by the employer.
One reason is that the group coverage only exists as long as the individual is employed at the company. When a person changes jobs, the money he or she put into their previous company's life insurance policy disappears as well. Employer-offered group life insurance rates may be offered at low rates, however those rates tend to increase every year.
Another reason is that employer-offered insurance is designed to help as many employees as possible. Each person's coverage is the same, even though everyone may have different health coverage needs. As a result, employees run the risk of not receiving their optimal coverage.
One advantage of obtaining independent life insurance coverage is that the insured often has the option to receive certain tax breaks from purchasing their own whole or term life insurance plans that are not offered with employer-provided group insurance.
An additional benefit about independent life insurance is how easy it can be to get. Today, people have the option to use online tools or access call centers in order to obtain whole life and term life insurance quotes. Indeed, some representatives are willing to take the time to explain how the whole or term life insurance quote is derived. Those explanations may not exist in a group life insurance scenario.
No matter what, people need to have some form of life insurance. For many reasons, it is recommended that each person obtain independent life insurance even if they opt to use their employer's group life insurance coverage as well.
