5 Reasons Why Your Employer Life Insurance Isn’t Enough

Mar 22, 2021

Millions of employees receive life insurance from their employers. It is a type of group insurance that varies depending on the size of a company. The multiple of life insurance is about one or three times the amount of an employee’s current salary. 

Most life insurance from employers is provided for free. Also, you don’t need to be in good health to get coverage. Finally, it is very convenient as you don’t have to consider getting quotes, process applications, or pass a medical exam. All you need to do is to fill out a simple form to designate your beneficiary.

Not Enough Coverage
Life insurance from an employer may not provide the best coverage. In most cases, employees may need more than their annual salary to cover their beneficiaries’ financial future. In most life insurance plans, coverage may be 10 to 15 times their annual income.  

There Are Limited Options 
You can’t choose policies as your employer already provides this. You won’t get a chance to talk to an insurance agent or advisor about your needs too. 

Employers Can Opt-Out of The Insurance 
Anytime an employer decides to quit providing this benefit to his employees, he may do so without considering his employers’ needs. This is the reason why most employers prefer not to provide life insurance for their employers. 

You Can’t Take It With You

Once you retire or lose your job, you can never take life insurance with you. Because it is tied to your job, you will need to get your own life insurance which is very inconvenient for people who have grown older and have developed illnesses or health conditions. 

Expensive Supplemental Insurance
Supplemental coverage is more expensive compared to buying a policy. You can buy additional coverage from the policy provided by your employer; however, it may cost more. Also, not all life insurance provided by employers may be converted to a supplemental life policy by the time you leave the company.  Expect to pay a higher rate if you can convert to a supplemental policy.  

At Paul Barrett Insurance Services, we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (631) 358-5793 or Click Here to request a free quote.