Is Group Life Insurance Enough

Is Group Life Insurance Enough to Protect Your  Family’s Financial Future?

If you are expecting life insurance to fully provide for your family’s financial security, you should think beyond the group life insurance that your employer may provide. A group policy might give you a false sense of security in believing you have adequate coverage.

Although some employers may offer several times your regular salary in life insurance benefits, you owe it to yourself to ask if this is enough. How long would this amount last, given your current expenses and debts? There is also the question of providing for your children and their higher educational needs. It is essential to make the time and effort to calculate how much is enough to cover your family’s financial needs should the unthinkable happen. This is especially important if you are the sole wage earner for the family.

General Rule

Generally, people should have seven to ten times their annual salary in life insurance, particularly younger people with families to raise.   Younger people need to know that now is the optimum time to purchase life insurance, as their policy will cost much less than waiting a few years.

If you are starting a new job or thinking about switching jobs, there is vital information about group life insurance benefits that you need to consider.

If you leave a job, the downside of most group policies is that you cannot take the coverage with you; it may or may not be portable. Even if the range is mobile, the insurer will typically require conversion of your term policy to a higher priced whole life policy. Indeed, it is preferable to accept the high-priced conversion policy rather than having no coverage at all.

Advantages of group life policies:

  • Employers provide guidelines, most often at no charge to you.

Disadvantages of the group:

Don’t leave your family in a precarious financial position regarding life insurance. Ensure your coverage is more than a fraction of what is needed.

Brian Gruss 352-508-4221