Here are some of the pros and cons of securing life insurance through your employer.
Many employers offer their workers life insurance coverage as part of their employee benefits package. However, is buying this coverage actually worth it for you? Here are some of the advantages and disadvantages of employer-offered life insurance you should consider.
The three main advantages of purchasing life insurance from your employer are convenience, price, and acceptance. Employer-offered life insurance is relatively easy to secure, which makes it an attractive option especially if you do not have other life insurance protections in place. If you do not already have a personal life insurance policy, securing coverage through work is a quick and relatively hassle-free way to get some coverage.
Additionally, because your employer is absorbing some of the expense of this coverage, you can also access it at a very low cost. Finally, when you get life insurance through your employer, you will have an easier time getting approved, even with existing medical conditions. When you get life insurance through your job, no medical exam is required, and you are often able to secure affordable rates even after disclosing your medical issues.
One of the main cons of employer-offered life insurance is that you are unlikely to remain at your current job forever. When you leave your company, there’s a good chance you will lose the life insurance coverage you have through them. Even if your company offers you the opportunity to convert your coverage into a personal policy, your rates will increase so significantly that you may be unable to continue paying for your life insurance.
Another major disadvantage of getting life insurance through your job is that you often have limited coverage options to choose from. This is why most life insurance experts recommend treating employer-offered life insurance as a supplement to a personal life insurance policy. This way you are not constrained by the low coverage limits and limited coverage options of your work’s life insurance plan.
These are some of the advantages and disadvantages to consider when it comes to securing life insurance through your employer. Do you have additional questions regarding your life insurance coverage options? If so, don’t hesitate to contact us at John Scott Insurance. We are ready to assist you with all your coverage needs today.