Daily Juice 047 – Group Life Insurance
Today I want to talk about one benefit, which is Life Insurance, that many do get, but the question for discussion is whether you get enough and if Group Life Insurance is the best option.
Typical benefit for Group Life insurance is one times the salary. This amount of coverage is often paid by an employer, so your coverage is free. If you would like more coverage, you can buy it for an additional premium.
Here are two drawbacks of group coverage:
- When participating in a group plan (that means you are in the pool with everyone else in the company, sick and healthy) you all share the cost of that insurance, therefore it costs you more if you were to go out and get the coverage on your own.
- Most of these plans are not portable, that means, when you leave an employer, you can’t take the policy with you. If you are young and healthy, that’s no problem, but what if you have a condition that prevents you from getting private coverage on your own.
My action item for you today is to assess first whether you need life insurance and then figure out where is the best place for you to get it (thru work or on your own.)