If you are a full-time employee, you almost certainly have access to life insurance through your employer. Choosing life insurance through work does give you the opportunity to supplement your employee benefits package; however, it is important to ask yourself if you have enough coverage if you simply rely on the life insurance policy offered through your job. You may be putting your future at risk if you don’t evaluate your options.
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The Benefits of Having Life Insurance Through Your Employer
If you have life insurance through your employer, you and your co-workers are a part of the same group life insurance policy. Group life insurance policies are convenient, as you’ll likely enjoy a discounted rate. Group life insurance policies can help improve employee morale. Another positive factor of offering life insurance as an employee benefit is that you can receive benefits that you might not qualify for on your own. As you are deciding whether life insurance through work is enough coverage, make sure that you thoroughly read over the terms of your life insurance policy. For example, some policies stop once you reach a certain age or once you decide to retire. In the event that your work life insurance policy stops at a specific point, you can use your individual life insurance policy to stay covered. However, keep in mind that purchasing supplemental insurance is often more expensive than purchasing an individual policy.
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The Benefits of Adding Extra Insurance Coverage
Having a life insurance policy through your employer is good; however, you must consider what happens if you decide to change jobs or you are let go. Under those circumstances, you may lose your life insurance coverage. There are strong odds that you will change jobs at some point. That means that your work life insurance policy will have to be adjusted at some point. You don’t want to stay on with your current job longer than you want to just to reduce the risk that you won’t be able to find a better life insurance policy somewhere else. You may have the option to change your work life insurance policy to an individual policy or you can inquire about transforming your existing work life insurance policy to your new job. Speak with your employer’s human resources department. You will want to avoid having a gap in coverage if you switch jobs.
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Factors to Consider
There are multiple factors to consider when deciding if life insurance through work is enough. Think about your children and whether you want to start a family in the future. If you are single, think about whether you want to get married in the future. You will have to think about your bills and whether you have any family that depends on you. While you consider your options, think about extra benefits that may not be included in your work insurance policy, such as medical insurance coverage, bonuses, and retirement benefits. Keep in mind that looking for coverage may become more expensive in the future once you have started a family or if you become diagnosed with an illness. If you are completely healthy, it may be cheaper to purchase an individual health policy compared to staying on your employer’s plan.
There are a lot of factors to consider when deciding whether you have enough coverage through your employer’s life insurance policy. You want to make sure that your assets are protected and that you are prepared if an unexpected emergency arises. When looking for the right coverage, don’t hesitate to contact the experts at Donald Weiss Insurance Services. Our dedicated team is ready to assist you with all your insurance needs.
