Does Your Company Life Insurance Policy Leave You At Risk?

We hear the same story every week from consumers looking for life insurance:  They lost their life insurance benefits from work due to a job change, job loss, retirement or their company cutting back on benefits.

Does Your Company Life Insurance Policy Leave You at Risk

It’s important for everyone with life insurance benefits through their employer to understand that once you leave your job, you no longer have your life insurance policy.  As simple as this sounds, most people don’t think about this until it’s too late.  There is no guarantee that you can qualify for affordable coverage when the coverage from your current company goes away.

Even if you have all the coverage you need through work, we always recommend dropping it for an individual life insurance policy (unless you have a prohibitive health condition).  Here’s why:

Tomorrow’s health is never guaranteed.  What happens if a few years down the road, you develop a health issue that would prevent you from obtaining life insurance?  From an insurability standpoint, you may not be able to obtain coverage or coverage might be very costly.  It’s always best to lock in rates while you’re younger if you plan on carrying life insurance in the future.

Aside from the possibility of having health problems later in life, one of the biggest factors that is going to be used to calculate your insurance premiums is your age. The younger that you are, the cheaper your coverage is going to be. Why not go ahead and secure the most affordable insurance policy that you can? No matter if you need insurance for yourself or you want to know if you can buy life insurance on your parents, we can help.

Flexibility and added benefits.  With individual life insurance policies you have added benefits that your company life insurance doesn’t have, such as: terminal illness rider, waiver of premium, child rider and if you have term insurance policy, you might also want to switch or convert it to a permanent plan without going through additional underwriting (if it’s within the conversion period).  If you have a permanent policy, you have access to cash value.

While having life insurance through your employer is an incredible benefit, in just about every case, the coverage from your job isn’t going to give you all of the additional benefits that you can get from a personal plan. If you want to take full advantage of all that insurance companies have to offer, you’ll have to purchase a plan of your own.

You have the option to carry your life insurance throughout retirement.  When you retire, your work coverage ends.  It will be a lot more affordable during retirement if you obtain an individual life insurance policy NOW.  The longer you wait, the more expensive it will be and on a fixed income – every dollar counts!  Plan ahead.

There is a large majority of workers that assume that they won’t need life insurance after they retire. This couldn’t be further from the truth. Even after retirement, life insurance is an essential safety net for your family.

There are a lot of people that, once they either quit or lose their job, don’t think about life insurance. It’s the last thing on their mind, but that could be one of the worst mistakes ever. Having adequate and quality life insurance should be one of the first things you do. If you purchase a plan outside of your employer, you won’t ever have to worry about getting the protection your loved ones need.

Your employer controls your benefits.  They can decrease or take them away at any time.  On top of that, you can lose your job or transfer to a new company who doesn’t offer the same benefits.  Take charge and control your own life insurance coverage.

One of the most common reasons that workers don’t purchase their own plan outside of work is because of costs, but a policy is much more affordable than you might think.  Don’t let your family down because you assumed a policy through work would always be there.

Getting Cheap Term Life Insurance

If you’re looking for the cheapest coverage that you can get, choosing a term insurance plan is going to be the best option. These policies are sold in a variety of lengths, usually 10, 20, or 30- year terms. After that set time, the coverage is no longer effective and you’ll have to buy a new plan, that’s why they are cheaper.

Unless you have a very severe health problem, you should be able to be approved for a medically underwritten policy. Even people with diabetes or cardiovascular complications can get a term life insurance policy with a medical exam. If you’ve been denied coverage in the past, don’t worry, we can still help you get the additional protection that your family deserves.

If you want to get insurance coverage at the most affordable rate, it’s important that you work with an independent insurance agent. These agents don’t work for one specific company like most agents, but instead they represent some of the most highly rated companies. There are several different advantages to working with one of these agents versus going through the journey alone.

One of the biggest advantages is that our agents have a lot of experience working with insurance companies. We know which companies are going to view your application more favorably and which ones will get you the best rates. If you tried to do this alone, it could take a while to talk with the different companies getting quotes from all of them. Your time is valuable, don’t waste it talking on the phone, answering the same questions.

Working with one of our independent agents will save you time and money. It’s a win-win.
If you have any questions about getting additional coverage on top of the insurance from your employer, please contact us today. We would love to help you get the insurance coverage that your loved ones want and deserve.

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About Jeff Root

is the owner of He's an independent life insurance agent who has helped 1,000's of consumers purchase life insurance online and over the phone.

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