Should I have a life insurance policy in addition to the policy I have with my Employer?

If you are considering purchasing a life insurance policy in addition to the one you have through your employer, it’s important to understand the benefits and limitations of both types of policies. Here is a closer look at some key points to consider when deciding whether you should have a life insurance policy in addition to the one offered by your employer.

1. Coverage amount: One of the main benefits of having a life insurance policy through your employer is that it may be offered at a discounted rate, as the employer is often able to negotiate lower premiums with the insurance company. However, the coverage amount of a group life insurance policy may not be sufficient to meet your needs. It’s important to carefully consider the amount of coverage you need to ensure that your loved ones are financially protected in the event of your death.
2. Portability: Group life insurance policies are often tied to your job, meaning that if you leave your employer, you may lose coverage. Individual life insurance policies, on the other hand, are portable, meaning you can take them with you regardless of your employment status. If you are considering changing jobs in the near future, or if you are self-employed, an individual policy may offer more stability and security.
3. Customization: Individual life insurance policies allow you to customize your coverage to meet your specific needs. For example, you can choose the amount of coverage you need, the term of the policy (e.g., 10, 20, or 30 years), and the type of policy (e.g., term life or whole life). With a group policy, you may have limited options in terms of customization.
4. Exclusions: Some group life insurance policies may have exclusions, such as pre-existing medical conditions or dangerous occupations, that may limit your coverage. Individual life insurance policies may be more flexible in terms of coverage and may not have these exclusions.
5. Additional benefits: Individual life insurance policies may also offer additional benefits, such as the option to add riders (e.g., accidental death coverage or long-term care coverage) or the ability to borrow against the policy’s cash value. These options may not be available with a group policy.

In summary, whether you should have a life insurance policy in addition to the one offered by your employer depends on your individual circumstances and needs. It’s important to carefully consider the coverage amount, portability, customization, exclusions, and additional benefits of both types of policies to make the best decision for you and your loved ones. Drivers Legacy, as a leading provider of life insurance, can help you explore your options and find the right policy to meet your needs.