Is your work life insurance enough?
It's a genuine benefit. It's also tied to a job.
Employer group life insurance is worth having. It usually costs little or nothing, requires little or no underwriting, and it's already in place.
The trouble starts when it's treated as the whole plan, because it has two limits that individual coverage doesn't.
Limit one: the amount is usually modest
Group coverage is commonly set as a multiple of salary. That's a formula based on your employer's benefit design, not on your mortgage, your dependents, or your debts.
Run your own numbers and compare. If the gap is large, group coverage is a foundation rather than a roof.
Limit two: it's tied to the job
If you leave, are laid off, or retire, group coverage typically ends. Some plans allow conversion or portability, usually with a short deadline and a different price.
That's the part worth planning for. The moment you most need coverage to be stable — a job change, a redundancy — is exactly when group coverage is least stable.
The health timing problem
Group coverage often requires little underwriting, which means people with health conditions can rely on it comfortably. It also means that if they lose it, individual coverage may be harder or more expensive to obtain.
If your health has changed since you were hired, that's an argument for looking at individual coverage while you still have options, not after.
What to actually check
- The coverage amount, in dollars rather than as a multiple
- Who's named as beneficiary on the group policy
- Whether it's portable or convertible, and the deadline
- Whether you can buy supplemental coverage through the plan
- How it compares with individual coverage at your age today
Want this checked for your situation?
General information only. A licensed insurance professional can tell you what actually applies to you.
General information only, not insurance advice. Coverage, availability, and terms vary by insurer and by state. Quote My Policy LLC is a licensed insurance producer.