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Why Relying on Life Insurance from Your Employer Can Be a Bad Idea

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Old 08-13-2010, 10:35 AM
bholas bholas is offline
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Default Why Relying on Life Insurance from Your Employer Can Be a Bad Idea

While it may be convenient to do so, relying solely on life insurance from your employer can be a bad idea. Here are three reasons why:

Not Enough

Most employer life insurance options usually restrict the amount you can have. The life insurance that’s included with your employee benefits is usually only one or two times your annual salary, but most financial experts recommend you have life insurance in the amount of five to seven times your annual salary.

Also, even if you can sign up and pay for additional life insurance through your benefits plan, you’re usually restricted to relatively small amounts. To make sure you have enough coverage, you should supplement your employer-provided life insurance with your own policy.

Not Guaranteed

With employee benefits, you are at the mercy of the company you work for -- you can work only with the options the company gives you. What’s more, nothing is guaranteed. While you may have an affordable life insurance plan this year, the rate could go up or the plan could be canceled next year. What happens if next year is the year you need that life insurance? If you purchase your own life insurance, you can choose the plan and guarantees that best fit you.

Not Portable

Just like with most other employee benefits, if you leave your company, you cannot take employer-provided life insurance with you. While you may be healthy enough to qualify for life insurance now, you don’t want to risk leaving your company in the future and then being unable to qualify for an individual policy. Even if your next job offers a policy, there’s the risk that something could happen to you while you're between jobs. Having your own policy ensures you’ll have coverage as long as you need it and won’t experience any breaks in coverage based on your employment situation.

Visit Garden State Life Insurance Company to see what plans you qualify for, get customized rate quotes and apply online today!

[Garden State Life Insurance Company offers a variety of convenient life insurance plans that can supplement the coverage your employer provides. You can complete your application online in less than 15 minutes, you don’t have to take a medical exam and you can have your premiums deducted from your checking or credit-card account. Garden State Life’s term and whole life insurance plans feature premiums and death benefits that are guaranteed. As long as you make the premium payment specified in the policy contract, you will have coverage that cannot be changed or taken away. And best of all, the policy will be yours and it will be there no matter where you work or live. You’ll be protected if something happens whether you are between jobs or venturing out to start a company of your own.]

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