Group Insurance, Better Than Nothing, But …

Something is always better than nothing. So yes, we’re happy that some employers provide a supplementary bonus by giving paid or sponsored life insurance or disability insurance, but there’s a lot to consider more than just checking the box “OK, I have life insurance.”

For our conversation today, we’re going to focus on life insurance, but disability insurance works pretty similar. Something you should ask yourself:

Is This The Last Job I’ll Ever Have?

Maybe, and for some of us have jobs we love, get paid well for, are challenged and love the culture, we want to be there for life, but we have also found that a lot of clients felt they would be in a better place because you never know what to happen in our lives, or heck, the lives of the owners of executives and your company. Most of us get life insurance for a long term solution for a gap in what assets we have and what we want to leave our family should we have to exit stage left prematurely in life.

Is This Enough Coverage?

Maybe it is. However, it’s been our experience that most group coverage only covers a fraction of your salary to three times your annual salary. Last time I checked, when we die, that usually last like than three years so maybe you might need more coverage.

What If My Employer Chooses To End Life Insurance As A Benefit?

Sadly, this is a common occurrence. At that point, you just have to get your own individually owned life insurance policy. Which is fine, however there are two things that could mess things up for you:

• Age - This new policy will be at your age at that time. And the older you get, the more expensive it is. Buying individually owned life insurance outside of group life insurance offered at work means you know what you’re going to pay today through the end of your policy or life.

• Things Change - Management changes. Benefits offered changes. Don’t risk protecting your family in hopes that your employer will continue to Do The Right Thing!

One of the many firms we work with is MassMutual. You can check out the video that explains the main difference and the problems that arise when someone is dependent on their employer’s benefits package for life insurance.