Updated: Nov 12
If you are one of the lucky ones who have the chance to work for an employer that still offers this amazing benefit, congratulations, but you are not necessarily protected in the way you should be. Let me explain why.
Any benefits such as life insurance, disability, retirement, even 401K that is offered through your place of work should always be in addition to what you have secured on your own. It should never be your only option.
Things to consider:
Life insurance is like a leaky roof, the longer you wait, the more expensive it gets.
The cost and availability of benefits is based not on if you can afford it, rather how old you are, what medical conditions you have have, medications you take, specialists you see, and how much insurance coverage you need.
A large part of what determines the type of life insurance you need is which stage of your life you are in. Your employer doesn't take this into account when they offer you a policy.
Does it cover accidents? What about sickness? Many employer policies will cover deaths related to one or the other.
Does the policy only cover you if you die while on the job, or does it also cover you in the event you pass away while at home?
Does it replace both your paycheck and your spouses and if so for how long? The recommended timeframe if you have children or rely on the others income to pay bills is 10 years. Why cover both salaries? You just never know how you may emotionally respond when your spouse passes away. You also cannot predict the manner in which it happens. You may not be able to simply go right back to life as it was. Most people cannot.
Does the policy through your employer give you a cash return in the event your child, you or your spouse want to go college, buy a new vehicle, start a business, buy a home, go on vacation or are you stuck refinancing or taking out a loan?
Do you own your home? In the event a major income earner passes away, does the policy through the employer cover final expenses, money to pay bills so you can grieve as well as not put you in a financial tragic scenario? Does it pay off the balance of your home?
If you become ill and can no longer work for the rest of your life, do you get to keep the policy? Does it pay you a lump sum so you can keep your bills paid and get better treatments?
If you quit or they close their doors, does the policy belong to you? Or are you stuck now trying to see if you qualify for coverage and if so how much since you will be older, maybe not in as great of health?
These are just some of the reasons to be vert mindful about being in control of your financial future. An employer policy is a great benefit if that is what you look for in a company to dedicate your time to, but you need to be educated and vigilant about your real options and personal needs.
Please feel free to schedule a complimentary call with me and at least learn your options!