THURSDAY, OCTOBER 26, 2023
Life insurance is a common benefit offered by employers. Many companies offer it as a way to help provide you with the coverage you need. Life insurance from employers may have important limits you should know about, though. If you have a policy, take a closer look at it. There are a few key things to focus on here. Here’s a closer look. 
How Much Is Available?
Employer life insurance policies tend to be lower-limit policies. For example, they may offer $100,000 worth of benefits. Some companies provide more, but it is common for these policies to offer less coverage. The key here is knowing what you need. If you have dependents, a mortgage, and other debts, that $100,000 may not be enough to protect your family.
What Type of Coverage Is It?
Most life insurance policies from employers are term policies. That means they remain in place for just a set number of years. They may be 10-year policies, for example. After that period, the policy expires. You might be able obtain a new policy if you are still with the company. And, that may mean new fees and costs associated with it. However, this varies from company to company.
What Happens If You Leave the Company?
Your life insurance may not go with you when you change jobs. That depends on the terms of your policy with your insurer. Discuss these details with your employer’s human resource department. You can verify this by checking your policy as well.
What Costs Do You Pay for the Coverage?
Some employers have employees pay for some or all of their life insurance coverage.
Whether or not this happens depends on a variety of factors. Most importantly, you need to consider whether the cost of the policy is worth it to you. For example, if you are paying for a low level of coverage through your employer that doesn’t meet your needs, it may not be ideal.
However, if you are in a high health risk group, you may get a much lower rate by obtaining coverage like this through your employer.
Keep in mind that you can purchase an additional policy, even if you have employer-provided coverage. You can obtain a long-term life policy or consider whole life insurance, too. Do this outside of your employer, so you remain in control over it. That can give you added peace of mind. And, it can be more fitting to your needs.
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