Picture here: You land an exciting new job with great benefits: vacation time, health insurance, 401 (k) … even free lunch once a week!
They offer group life insurance too – twice your annual salary. It sounds like a lot, right? In many cases, it cannot stretch as far as you think.
See also: The three best reasons why people buy life insurance
Let's say you make $ 50,000 a year. A $ 100,000 benefit can make a big difference to your family – for a while. But over the years, can it really go the distance to pay for expenses and reflect the heritage you want to leave to your family? Consider how far $ 1
- Private Student Loans
- Mortgage or Rental Payments
- Home Appliances and Other Lifecycle Costs
- Health Care
Life insurance is by its nature a deeply personal financial decision. When you rely solely on group coverage through work, you lack the ability to personalize your coverage based on your specific needs. That is why it is important.
4 Reasons to consider getting your own life insurance policy
The experts at Life Happens *, a non-profit organization dedicated to educating the public about the importance of life insurance in financial planning, offer these four disadvantages to To rely on your group insurance alone:
1. If your work situation changes, you may not be able to maintain the same coverage. Whether that means you are secluded, moving from full-time to part-time, or leaving the company … in many cases, an employee cannot keep his policy when circumstances change.
2. The scope may end when you retire or reach a certain age. Many people tend to lose their insurance coverage when they continue to work past a certain age or when they retire. This may mean that you lose your insurance when you need it most.
Related: Term vs. Whole Life Insurance: What's the Difference?
3. It is an advantage … not a guarantee. Your employer can change or stop offering life insurance without your consent, because the contract is between your employer and the insurer. With many employers in cost-saving mode, employment benefits (unfortunately) can be among the first things on the cutting block.
4. Your options are limited. This type of coverage is not tailored to your specific financial needs. In addition, your employer may not offer you the opportunity to purchase additional coverage that you need, which means you are exposed.
Individual life insurance plans can offer superior benefits, and regardless of your employer or employment status, you can tailor them to meet your individual needs and circumstances. Read the full article on the Life Happens blog.
Life insurance from ERIE can help
You shouldn't have to choose between your budget and your family's safety in the future. With and flexible coverage options, we can help you build a policy that is affordable now and customizable later.
See how different types of life insurance stack up or request a free quote from a local ERIE agent in your neighborhood.
ERIE Life Insurance products and services are provided by Erie Family Life Insurance Company (Home Office Erie, PA), a member of the Erie Insurance Group, and are not available in New York.