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Employer Provided Life Insurance – What You Need to Know.

Life insurance is something that many people simply have through their employer and, therefore, is something that many people do not fully understand. Most workers tend to be covered by the group life insurance that their employer provides rather than shopping for their own private policies; however, we would like to give you some information about the dangers of blindly accepting coverage from your employer.

  • The Coverage.
    • The coverage provided by most employer-provided life insurance policies is mediocre at best. The offer of life insurance automatically provides the policy-holder with a false sense of sense of security that misleads the employee into thinking that they are protected with little to no knowledge of what level of coverage they actually hold. The amount of coverage provided by most employers is not sufficient protection for their employees and their loved ones, so this leaves employees with unwanted gaps in coverage.
  • The Options.
    • When shopping for your own personal life insurance policies you have the ability to customize your coverage to meet your specific needs, desires, and goals. When choosing to be under your employer’s group plan you do not have this luxury, and your options become extremely limited. As an independent agency we cannot only provide you with personalized quotes, but can run your quotes through multiple companies to get you the best coverage for your ideal protection.
  • The Risk.
    • Something that is important to consider is the possibility of switching employers. When you hold your life insurance policy through your current employer there is a major possibility that your group policy will not be able to convert to an individual policy, and if it does then the cost will most likely go up. Another thing to consider is if your next employer does not offer you a group life insurance benefit option. This would put you in the position where you would need to go shop for individual life insurance options later in your life, causing the cost of your policy to rise significantly. Even if you plan on living the rest of your life working for your current employer, you never know when an unforeseen situation can arise and affect your employment status (such as a global pandemic…).

Life insurance is more important than most realize, and it is something that everyone should take the time to explore in order to ensure that you have the proper coverage to meet your individual needs. Life insurance is not something you should be willing to take a risk on, so give us a call today to learn about what options are best for you and your loved ones.


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