Speak with an experienced advisor! (800) 208-4575One of the reasons someone uses not to buy life insurance is the following:
“I have life insurance through my job.”
Many companies offer a life insurance policy to their employees as an employee benefit. Many of these employees don’t know the amount of the policy or if they do, they don’t know all of the features of the policy. Here we will explain some of the features of these employer offered plans.
Most of these life insurance policy’s are only a term or temporary policy which means that if you leave that place of employment, for whatever reason, the policy doesn’t go with you. The cost is usually relatively low to the employee because there are discounts as a part of a large group plan.
Usually the employer pays part of the monthly cost and the employee pays a part. If there is an option to keep that plan after leaving your job it is no longer part of the group plan and the employer will no longer pay the first part of the premium. Typically the cost to the individual is much higher and it would have been better if they had had their own plan as a stand alone plan or as a supplement to the employer owned plan.
Only a very small percentage of these plans pay a claim due to the employee changing jobs, retiring or the employer choosing to change insurance companies. Sometimes the level of contribution the employer pays will change which causes an employee to drop the insurance.
If you have more questions or would like a quote on a stand alone plan please feel free to contact us. We are glad to help. Please call our office today.
