My employer provides life insurance, but it’s limited. Should I get my own?
It depends on your situation. If you have a need for life insurance, then you should obtain your own coverage for a couple of reasons:
- Coverage through an employer can be limited.
- For individuals who can qualify for preferred rates (in good health), the rates for individual policies over a longer period than a couple of years will almost always be lower. Group policies generally have more liberal underwriting, which translates into higher rates as they cover a greater range of individuals.
- Most people don’t stay with the same employer for the duration of their work life, so having coverage tied into employment isn't advisable; group coverage will usually terminate or cost a lot more if employment is terminated.
[Nestpert] Tony Steuer, CLU, a specially licensed life insurance analyst and author of Questions and Answers on Life Insurance
by The Nest Editors
7/1/08
See more:
insurance,
Money