Employer-Sponsored Group Life Insurance
As more Americans are keeping a close watch on their pockets, they are foregoing some basic financial products, including life insurance. With many employers offering employer-sponsored group life insurance plans through providers such as Unum Life Insurance, consumers feel extra income spent on premiums for individual life insurance can be saved. Is this really a good idea though? Should Americans be relying solely on their employer for life insurance? While this may be the cheapest route to take, there are some downsides to consider before you make this choice.
First, unemployment rate is currently high, and some experts believe it may get worse before it gets better. With this said, no one's position is 100% secure and if there is a chance you may lose your job you need back up to your employer-sponsored benefits such as life insurance. Some employers will let you carry the policy with you, but it will no longer be free if the premiums were paid by the company. Many employees do not even realize how good they have it until their benefits are gone.
Another thing to consider is the amount of life insurance your employer offers. Some companies give one to two times the base pay of someone's income. While this is a good chunk of change, is it enough to cover all of your expenses and debt if you were to unexpectedly pass away? For most people, especially with a family, this is not enough to cover all of their expenses so a supplemental plan is a good idea.
The last thing to realize is that a lot of employers grant life insurance without a medical exam and without any concerns over pre-existing conditions. This might make it tough for you to get individual life insurance on your own down the road. If this is the case, you should continuously shop around until you stumble upon a quality, affordable plan that will follow you even if you switch employers. You do not want all of your eggs in one basket when it comes to your finances and this applies to life insurance and the service that it provides.