Term Life Insurance Articles
Why Your Own Term Life Insurance Policy Is Better Than One Provided By An Employer
2010-01-05
Many employers offer their employees a choice term life insurance policy as a major work benefit. This can be very helpful for many workers that might be unwilling to go out and find their own term life insurance quotes and plans, as group policies don't require large premiums and provide exceptional coverage for the companies that have them. Unfortunately, there's some danger to employer sponsored life insurance. If you quit your job or if you're fired or laid off, coverage abruptly ends. This can be catastrophic for many American families that have no source of life insurance coverage other than what their employer provides.
Of course, many think that if job loss happens, they can always go and buy their own life insurance policy. This is not always the case--if a term life insurance policy is canceled at an older age, a policy seeker won't be able to get the types of rates and coverage options that he could as a younger person. Also, if the policy had any pre-death payout terms (as is often the case with whole life or convertible policies), that money will be lost when the policy ends. Government unemployment programs do not cover the loss of life insurance policy benefits, so policy holders may simply be out of luck.
A much better option rather than relying on employer-provided life insurance is to buy a separate policy. This affords constant coverage, regardless of when or if a job ends, and gives workers more flexibility to move between job offers without losing a very important benefit. Paying a term life insurance premium every month is inconvenient, of course, but it's less inconvenient than completely and suddenly losing a policy. If a worker buys a term life insurance plan in the early stages of his or her career, the premiums are actually quite low. Best of all, if employers offer a life insurance benefit down the line, you often don't need to miss out on this benefit at all--many employers will allow you to opt for a cash version of the benefit that you can use to pay part (or all) of your term life insurance premium. Buying your own coverage also allows you to set your own terms, and you can buy the right amount of coverage that works for your family.
Group life insurance policies offered by an employer are certainly tempting. However, buying your own term life insurance policy is a much better choice with numerous advantages. You're afforded far more freedom and choice, and the resulting policy often feels much more secure.
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Many employers offer their employees a choice term life insurance policy as a major work benefit. This can be very helpful for many workers that might be unwilling to go out and find their own term life insurance quotes and plans, as group policies don't require large premiums and provide exceptional coverage for the companies that have them. Unfortunately, there's some danger to employer sponsored life insurance. If you quit your job or if you're fired or laid off, coverage abruptly ends. This can be catastrophic for many American families that have no source of life insurance coverage other than what their employer provides.
Of course, many think that if job loss happens, they can always go and buy their own life insurance policy. This is not always the case--if a term life insurance policy is canceled at an older age, a policy seeker won't be able to get the types of rates and coverage options that he could as a younger person. Also, if the policy had any pre-death payout terms (as is often the case with whole life or convertible policies), that money will be lost when the policy ends. Government unemployment programs do not cover the loss of life insurance policy benefits, so policy holders may simply be out of luck.
A much better option rather than relying on employer-provided life insurance is to buy a separate policy. This affords constant coverage, regardless of when or if a job ends, and gives workers more flexibility to move between job offers without losing a very important benefit. Paying a term life insurance premium every month is inconvenient, of course, but it's less inconvenient than completely and suddenly losing a policy. If a worker buys a term life insurance plan in the early stages of his or her career, the premiums are actually quite low. Best of all, if employers offer a life insurance benefit down the line, you often don't need to miss out on this benefit at all--many employers will allow you to opt for a cash version of the benefit that you can use to pay part (or all) of your term life insurance premium. Buying your own coverage also allows you to set your own terms, and you can buy the right amount of coverage that works for your family.
Group life insurance policies offered by an employer are certainly tempting. However, buying your own term life insurance policy is a much better choice with numerous advantages. You're afforded far more freedom and choice, and the resulting policy often feels much more secure.
