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The Life Insurance Blog

Helping millions of Americans become educated
in making decisions about their life insurance needs


Is Your Employer-Provided Life Insurance Right for You?

May 8, 2014 7:40:00 AM

One of the many benefits of working for a company or organization is employer-provided life insurance. Having access to guaranteed life insurance is a benefit that many employees enjoy. However, if you are one of the millions of Americans depending solely on your employer-provided coverage for life insurance protection, we encourage you to take a closer look. While you may find that you are, in fact, happy with your coverage, you might also be surprised to learn that your employer-provided coverage falls short or costs too much.

Employer Provided Life InsuranceInadequate Coverage

Consumers are often surprised to learn that their employer-provided life insurance falls short. Experts recommend carrying enough coverage to settle outstanding debts (including mortgages and car loans), to provide daily living expenses for your family, and to cover long term goals such as college tuition. Most employer-provided life insurance provides a death benefit equal to a one or two years of your annual salary. If this would leave your family struggling to make ends meet, it’s time to consider adding private term life insurance policy.

Loss of Coverage

Consider what would happen if employer-provided coverage was no longer available. Perhaps you change jobs and your new employer does not offer life insurance. What if you’re laid off or unable to work? Finally, consider what would happen if your employer decided to no longer offer life insurance benefits. Many companies were forced to make tough decisions during the recent financial crisis, leaving millions of American professionals without the coverage on which they previously depended.

Higher Premiums

At IntelliQuote, we often hear from consumers who are surprised to learn that they can actually secure more coverage, at a lower price, than that offered by their employer. That’s right; it can actually be cheaper to buy a term life insurance policy on your own. Because group policies account for the average risk of the entire group, the healthier individuals face the same premiums as those in poor health. This is precisely why we encourage consumers to compare their options.

If you’re currently depending upon employer-provided coverage, particularly if you’re paying into a plan, now is the time to request a term life insurance quote. In a matter of minutes you can compare policies side-by-side and determine if your employer-provided coverage is right for you. Let’s get started today!

Would you like to receive more tips and insight on securing the right life insurance policy for your needs? Follow our blog! Here we address the topics that impact your family’s financial health. While there, be sure and read these recent popular posts:

Life Insurance Explained: Why You Need Life Insurance at Every Stage of Life

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