Saving You Money For Life

Many employers offer life insurance coverage to their employees as an option in lieu of compensation or as a benefit. But is it a good idea?

The Down Side. If you lose your job or are disabled and unable to continue working, they could cancel it on you, leaving you older than when you first applied and possibly with new health conditions, both of which are factors that will make any new policy you get more expensive than if you buy it now.

The Up Side. Employees generally can’t be turned down for employer-provided insurance policies, so if you’re having difficulty finding coverage, this might be a good idea. Also, these policies may offer low limits and coverage amounts but at a really good price. If this is the case, you may want to consider using it to supplement your main life insurance policy.

As always, though, compare rates. You may find that your employer provided life insurance is much more expensive than you can get as an individual. If you won’t have a problem getting accepted, then ditch the employer’s life insurance plan completely and up the limits on your main policy.

You can leave a response, or trackback from your own site.