There are many reasons people give for not purchasing life insurance coverage. Some say they’re too old, while others say that they’re too young. Some think that they don’t need it, while others worry that they won’t qualify. Some find it too expensive, while others find it too confusing. Another common belief is that if your employer offers life insurance, you don’t need to obtain your own.
This is a common sentiment. According to 2017 data, of the 60 percent of respondents who had life insurance, 20 percent of men and 18 percent of women only had group life insurance coverage. Even in households with over $100,000 in annual income, 25 percent only owned group coverage, and 40 percent of insured husbands and wives only had group coverage.
This may be a common belief, but it is not the wisest decision to make regarding your life insurance coverage. Let’s take a look at why.
Group Life Insurance Coverage Gaps
Group life insurance through your workplace can be a great way to secure extra coverage. However, this should not be your only form of coverage. Here are some of the reasons why:
- Your employment status is likely not permanent. Employer-provided life insurance is tied to your employment. If you retire or leave your current employer, your coverage will stop there.
- The coverage might not be enough. This varies depending on the employer, but the basic policy might not be enough. If you have a non-working spouse, several children, or anyone with special needs in your family, the basic group life policy likely will not have a high enough face value.
- You don’t know who’s offering the coverage. Check which insurer your employer uses. It is not uncommon for businesses to choose lower-rated insurers to save money on their group benefits. However, if you purchase your own life insurance coverage, you will be able to select the insurer that you feel offers the best coverage.
- Your employer could withdraw coverage. Group life insurance is not a legal requirement. At any time, your employer could choose to stop offering life insurance coverage as a further cost-saving measure. If that happens, you’ll be left without coverage, and if you’re older or experiencing health problems, it could be difficult (and expensive) for you to re-obtain coverage.
So, do you need life insurance if your employer already offers it? Our answer is yes. If you’re worried about redundancies or high premiums, bring this up with your insurance agent. An agent would be happy to work with you and find a private life insurance policy that can work alongside your group life insurance.
About National Catholic Society of Foresters
At National Catholic Society of Foresters, we pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. Sales from our financial services products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. Our portfolio is extensive, ranging from various life insurance policies to IRA’s to support your financial needs no matter what stage of life you’re in. For more information, contact our friendly experts today at (855) 804-7424.