Finance

Published on November 12th, 2019 | by Sunit Nandi

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Why Your Life Insurance From Work Probably Isn’t Enough

Do you get your life insurance from work?

Although this may seem like a great perk from your employer it is still worthwhile for you to have your own separate policy. Here are the key questions you need to ask to determine whether your life insurance from work is enough or if you should buy your own personal policy.

Another big perk of having life insurance through your job is that it is usually cheaper because big employers are usually able to get coverage at a group rate. This means that you will have lower premiums and that you are less likely to be disqualified due to medical issues or other issues.

1. Is your life insurance conditional on your employment?

As we all know the days of working for the same company for 50 years are long over. If your life insurance is dependent on your employment than you should make sure you have your own policy.

2. Is your life insurance coverage amount even enough?

Just because you have a life insurance policy does not mean you have enough money to cover your loved ones in case of worst-case scenario. The ideal amount of life insurance coverage is that your loved ones will be financially stable no matter what the future may hold. Make sure that the coverage amount is enough for your loved ones to cover their major expenses for a significant amount of time.

3. What type of health are you in?

Your life insurance rates are dependent on many factors and the three of the primary ones are your age, personal health and your family’s medical history. That means it is much better to buy life insurance when you are young and healthy as opposed to being older and potentially sick. Although people with medical issues can often times get no exam life insurance this policy is often more expensive.

Think Long Term

Life Insurance is one of the few things you buy that you hope you will never have to use. However, it is essential that you protect your loved ones if you are not able to be there to provide. Although it may be tempting to just put off this expense because “work has you covered” the reality is that is probably not enough.

If you are looking for help with Life Insurance, you should consider Sproutt.com. Just go to their website and answer a few simple questions and their advisors will work with you to find the life insurance policy that fits you best.

Play it Safe

Given the issues that can arise from employer-sponsored life insurance, purchasing a personal life insurance policy in addition to what you get from work is a good idea, provided it’s within your budget. When you have a personal life insurance policy, you don’t have to worry about insufficient coverage, changing jobs, or increasing premiums. However, opting for an employer-sponsored life insurance policy isn’t a bad idea. After all, there’s no harm in extra coverage, especially if your company is footing the bill. If your company isn’t paying entirely for your policy and you need to chip in, you can again assess if you have the budget for it. If you only have the budget to pay one monthly life insurance premium, personal life insurance is usually more worthwhile than an employer-sponsored policy.

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I'm the leader of Techno FAQ. Also an engineering college student with immense interest in science and technology. Other interests include literature, coin collecting, gardening and photography. Always wish to live life like there's no tomorrow.



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