Why Your Work’s Life Insurance Policy isn’t Enough

A report last month showed that for the first time ever, more Americans have a life insurance policy from their employer than have individual life insurance. It’s a relatively slim margin- 108 million versus 102 million, and it’s a good thing, but it’s not as good a thing as one might initially think.

One thing about those numbers is that, if you really take a look at them, the number itself may be up, but the percentage is down. Yes, 108 million people have a life insurance policy through their employer, but it’s actually only 46% of employees. The percentage peaked at 54%  in 1984. Further, the number of employers offering life insurance is falling, even though 73% of Americans think it should be an employee benefit.

Numbers aside, there are two big issues with employer-provided life insurance. First of all, it’s probably not going to cover you for as much as it should, and secondly, it probably isn’t going to go with you if you leave your job. With a personal life insurance policy, you can set the amount that’s right for you and you don’t have to worry about losing it if you get paid off or decide to take another job.

One other issue is that employees, once they’ve picked their policy, hardly ever review it. You may have chosen a policy when you were newly married. Fast forward 15 years and you’ve got a wife, three kids, and a higher standard of living. The life insurance policy your employer provides you will still help in case something happens to you, but it won’t do as much good, and you don’t have your friendly neighborhood ALLCHOICE agent sending you regular reminders to review your policy.

The moral of the story is that even if your employer provides life insurance, carrying a personal life insurance policy can be extremely beneficial. Go ahead and get in touch with us now to discuss your life insurance needs.

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