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Should I get life insurance through my employer or myself?

Why you can choose to get individual life insurance

Just like with any other product or service, having more choices means that there is a greater chance that you will find a perfect fit for your needs. Finding the right life insurance is no different.

»Calculate: Life Insurance Needs Calculator

When you get life insurance, choose a plan to secure your family's future, so it's wise to have all the options available to you – from the coverage you can apply for to the insurance companies you have the opportunity to choose from. When you choose to get individual life insurance, you are not limited in your choice of insurance provider or what type of insurance you want.

Here are some points to keep in mind when deciding on the best way to get life insurance: [1

9659003] Pro: Term life insurance provides families with excellent coverage at very affordable rates.

Quotacy works with over 25 of the country's highest ranked life insurance companies. Shopping on the market is the best way to find the cheapest life insurance. Compare easily and apply online at Quotacy.com and your agent will keep you updated throughout the process.

Disadvantages: Your life insurance premiums must be paid by you, not your employer.

Unlike some employer-sponsored plans, it will not be free; Your life insurance premiums may not be as expensive as you originally thought. In addition, you can get life insurance deals for free, with no obligation, so it is always worth looking at your options.

Pro: Term insurance is a more flexible option.

Term insurance allows families to get life insurance that meets their needs during different periods of their lives (a process called laddering which means that you buy several insurances of different lengths to provide different levels of coverage).

Disadvantage: You may need coverage longer than your term.

When your term is complete (and if you only have one insurance policy, rather than a group of ladders of different lengths), you will need to either convert to a permanent plan or obtain life insurance again in the future as you will no longer have coverage. You may need to look for a new insurance company to find the best life insurance plan for your family.

At the same time, employers often stay with the same insurance providers year after year, so when your term expires you probably won't need to make an effort to look for a new insurance company – but you will not have any of the other benefits of having an unlimited range of suppliers to choose from, such as lower prices.

When evaluating your choices, it is important to note that the easiest way to determine which insurance company provides the best life insurance for your family is to compare a wide range of plans side by side, just as we help you do here. on Quotacy.

Use Laddering to Create the Best Life Insurance Package

As we mentioned above, step insurance is an option where you get life insurance to cover different points in your family when you anticipate your needs changing. Charging allows you to avoid gaps in coverage and can also serve as a complement to an employer-sponsored life insurance plan.

Laddering Scenario 1

Tim's son, Mark, was just admitted to his dream college and has changed his future major from accounting to pre-medical studies. Realizing that Mark will face at least another four years of college, Tim – who already has an employer plan – decides to get life insurance to supplement his existing coverage.

Tim buys a 10-year life insurance policy that will start just as his second term life insurance coverage ends, when Mark turns 21. This will provide protection for Mark through medical school, the three years of his residence permit (when he receives only a moderate salary and has to deal with significant student loans) and the first three years of his medical career.

Laddering Scenario 2

Jacob and his wife, Ellen, have just welcomed their first child Emily. They buy life insurance with five semesters:

Policy 1 is a $ 100,000 insurance for 10 years that insures Jacob when Ellen finishes graduate school and prepares for her teaching career. They will only rely on Jacob's income for the majority of these years and the term police death benefit can help replace Jacob's income if he unexpectedly passes away.

Policies 2 and 3 are each $ 250,000, 20-year insurances, one insures Jacob and one insures Ellen. These insurances will be active until Emily has gone to college to ensure that tuition can be paid even if Jacob or Ellen should pass away.

Policies 4 and 5 are each $ 250,000, 30-year insurances, one insures Jacob and one insures Ellen. These policies will run the length of their mortgage, Emily & # 39; s college years, and until Jacob and Ellen prepare for retirement.

Both families in both scenarios will avoid gaps in coverage and have the right amount in place at the right time.

Review the differences between employer insurance (group) and individual life insurance

Basic group life insurance

  • Benefits
    • Practical – Easy registration of your work.
    • Guaranteed coverage – No health issues or medical examinations.
    • Free – Regardless of your age or health; the employer usually pays the premiums.
  • Disadvantages
    • Work-Related Restrictions-Coverage usually requires you to work actively. If you become and are unemployed before you die, the benefit may not be paid.
    • Not portable – If you leave your job, you can not take the insurance with you. Your next employer may not offer life insurance.

Supplementary group life insurance

  • Benefits
    • Practical-Register at work and get premiums deducted from your salary.
    • Minimum guarantee (if any) -Can often get 2-3 times your salary without signing. For larger coverage amounts, you may need to answer some health questions.
    • Potentially lower costs for the unhealthy – If you have health problems, it may be in your best interest to buy as much group life insurance as you can.
  • Disadvantages
    • Work-Related Limitations- Your supplemental coverage usually requires you to work actively.
    • Not portable- If you leave your job, your supplementary coverage may not go with you. But you may be able to convert it into a portable policy for higher interest rates.
    • Increasing Premiums – These insurances often increase gradually based on your age.
    • No Alternatives – Group coverage usually offers few, if any, extra bells and whistles that an individual insurance company can include.

Individual life insurance

  • Benefits
    • Potentially lower costs for the healthy – Coverage depends on your conditions via warranty. Healthy people usually pay less for an individual insurance policy than a supplementary group policy.
    • Level premiums-Forward policies lock in your interest for a certain period (ie 10-40 years)
    • Portable-Since this insurance is not connected to your employer, you can take it with you even if you change jobs.
    • No work-related restrictions- You do not have to work actively for coverage to be active. Individual insurances are more likely to pay out benefits than group policies.
    • Multiple Options – Can choose from many different semester lengths, coverage amounts and riders, which can add benefits and flexibility.
  • Disadvantages
    • Insurance Process – Individual policies are usually fully drawn, which means that the price will be based on your age, health and other factors. You will need to answer medical questions, your health records may be evaluated and you may need to have a medical examination.

The easiest way to find the best individual term life insurance is to use an online tool such as Quotacy & # 39 ;s to see life insurance providers' most important ratings – such as Moody & # 39 ;s, S&P, JD Power and BBB – while comparing your quotes on the same page.

Take a look at our best life insurance companies and get a quote in seconds. If you see a plan that interests you, you can start and finish your application in less than 5 minutes.

»Compare: Quotes on life insurance

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