Do you Have Enough Life Insurance?
What is the Money Date? A weekly time to check in. 3 things we review and update: 1. Spending 2. Earning 3. Savings
This month our focus is on various employee benefits available to you. Today I want to talk about 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 benefits for Group Life insurance is 1X salary. This amount of coverage is often paid by employer, so your coverage is free. If you want more coverage, you can buy it for additional premium.
Here are two drawbacks of group coverage:
- When participate 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 cost you more, if you were to go out and get the coverage on your own.
- Most of these plans are not portable. So when you leave your 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.)