Is Your Employer Life Insurance Policy Sufficient?

Most businesses, particularly larger ones, include life insurance policies as part of their benefits package. This “group life insurance” benefit is typically a term policy worth one or two times your annual salary that is provided at no cost to you, but it may not provide adequate coverage.

Company-sponsored insurance plans benefit young, single employees; however, those with families should review their policy to ensure it covers the needs of their survivors.

According to online insurance provider Intelliquote, the standard group coverage policy offered by most employers is typically a term policy equal to one or two times the employee’s base salary.

Employees should consider their family’s current financial situation as well as future needs when determining the amount of coverage needed. It is recommended that you purchase a policy worth eight to ten times your annual salary.

If you require more coverage than your employer’s “basic” benefits package provides, contact your human resources department for assistance.

Employees may benefit from lower premiums by purchasing an individual policy, depending on their health.

Company-provided policies frequently lump employees into one “overall” health average, resulting in the healthiest people paying the same insurance premium as their coworkers who may lead unhealthy lifestyles.

Another reason to consider an individual plan is the number of Americans who change jobs each year. Employees who leave their jobs may be forced to pay more to keep their insurance policy in force. While most employers allow their employees to keep their life insurance, the cost frequently rises.

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