Q: What are the advantages and disadvantages of buying life insurance coverage through my employer vs. buying through a separate company?
A number of companies offer their workers employer-sponsored life insurance coverage, generally purchased through an outside insurance company, as part of the employee benefit package. The employer does not take out a separate life insurance policy on each individual employee, but rather purchases a single group policy (subject to one group premium) that provides coverage for all employees who choose to participate.
This arrangement may have certain benefits for your employer (e.g., a tax deduction) and, more importantly from your perspective, can be a relatively inexpensive and hassle-free way to obtain some of the life insurance coverage you need. In some cases, an employer may go so far as to shoulder the entire cost of a group policy. Even if you have to pay part of the group premium, the amount will probably be less than the premium you would pay if you bought a separate policy directly from an insurance company. That's because, in the case of a group policy, the insurance company's risk is spread out among the members of the group and therefore reduced. For the same reason, you generally don't have to submit to the medical exams, probing questions, and other screening processes that are often required when you apply for an individual policy. Insurance companies know that even if some of the individuals covered under a group policy are poor risks, the other members of the group will probably make up for it due to the law of averages.
One disadvantage to consider is that it's difficult to obtain a customized policy that meets your individual needs. The amount of coverage, for example, may be considerably less than what you require to be adequately protected. If so, your employer's group policy may give you the option of purchasing more coverage for an additional cost. And you can always shop around for a policy to supplement your employer's coverage.
Finally, bear in mind that if you leave your job, any life insurance coverage obtained through that employer will probably end with your departure. This could leave you under-protected or, worse yet, without any coverage at all at a time when it may be difficult for you to qualify for an individual policy (due to age, changes in health, etc.). With this in mind, it may not be prudent to rely on an employer's group policy as your sole or primary source of life insurance coverage (although you can sometimes convert membership in a group policy to an individual policy upon leaving the group).
I AM A LIFE INSURANCE POLICY
I AM A PIECE OF PAPER, A DROP OF INK AND A FEW PENNIES OF PREMIUM.
I AM A PROMISE TO PAY.
I HELP PEOPLE SEE VISION,DREAMS AND ACHIEVE ECONOMIC IMMORTALITY.
I PAY OFF MORTGAGES SO THAT THE FAMILY CAN REMAIN TOGETHER IN THEIR OWN HOMES.
I ENSURE PEOPLE THE DARING TO LIVE AND THE MORAL RIGHT TO DIE.
I CREATE MONEY WHERE NONE EXISTED BEFORE.
I GUARANTEE THE CONTINUITY OF BUSINESS.
I CONSERVE THE EMPLOYER’S INVESTMENT.
I AM TANGIBLE EVIDENCE THAT A MAN IS A GOOD HUSBAND AND FATHER, AND THAT A WOMAN IS A GOOD WIFE AND MOTHER.
I PROVIDE CASH IF ILLNESS, INJURY, OLD AGE OR DEATH CUTS OFF THE BREADWINNER’S INCOME.
I AM THE ONLY THING THAT YOU CAN BUY ON THE INSTALLMENT PLAN THAT YOUR FAMILY DOESN’T HAVE TO FINISH PAYING FOR.
I AM PROTECTED BY LAWS THAT PREVENT CREDITORS FROM ASSESSING THE MONEY I GIVE YOUR LOVED ONES.
I BRING DIGNITY, PEACE OF MIND AND SECURITY TO YOUR FAMILY.
1 GUARANTEE THE FINANCIAL ABILITY TO HAVE HAPPY HOLIDAYS AND THE LAUGHTER OF CHILDREN-EVEN THOUGH FATHER OR MOTHER IS NOT THERE.
I AM GUARDIAN ANGEL OF THE HOME.
I AM A LIFE INSURANCE POLICY.
(THE GIFT OF LOVE)
When it comes to protecting your families financial future,life insurance plays an important role.With the job market rocky at best, if the breadwinner in your family get's laid off,the loss income will affect the entire family.What would that family do if that person dies? A big fear for many American families is the death of a wage-earner or caregiver,leaving the surviving family members unable to cope financially.Life insurance offers Peace of mind through immediate financial protection for dependents.Life insurance enables individuals and families from all enconomic brackets to maintain independence in the face of financial castastrope. It is important during uncertain times that you consult us or your insurance agent to make sure your family is protected.