Get Life Insurance – Even If You’re Covered Through Work

  • Finance Friday

Life Insurance Through Your Employer

Many companies provide life insurance as a benefit to their employees. These policies are typically set as a multiple of each employee’s salary.  For example, if you earn $75,000 per year, and the group plan provides 2x your salary, you essentially have a $150,000 policy.

Is That Enough?

The amount of life insurance a company provides is rarely enough to completely protect your family. That means having a personal policy on the side is usually a good idea.  But there’s another important reason you should consider one.

The Cost of a New Policy If You Leaving Your Job

When you receive life insurance through your employer, it’s an automatic benefit. You don’t have to qualify in the same manner in which you do to get a personal policy. That’s a nice benefit while you’re employed.  But when you leave, you’ll have to qualify for a replacement policy based on your age and health. And that’s the reason you should consider getting a personal policy as soon as possible.

The older you get, the more expensive life insurance becomes.  For most people, today is the day in which getting a life insurance policy with be the least expensive it will ever be. Plus, once it’s in place, it’s yours to keep as long as you continue making the payments and the policy hasn’t expired. Since not all employer plans are portable (meaning you can’t keep it when you leave), having a private policy in place will ensure you remain covered during periods of unemployment, and you’ll be protecting your family regardless of your employment status.

We Don’t Sell Life Insurance

Advisors with Reliant Wealth Management are not insurance agents. So, if you’d like some unbiased advice about how much insurance you should consider having, book an appointment today.  Online booking makes it easy.

2018-01-12T11:00:35+00:00

About the Author:

Tim Plachta, CFP® owns and operates Reliant Wealth Management and Reliant Consulting Partners.  He works primarily with small business owners to help them increase profit, reduce their workload (so they can relax more), and invest enough of their earnings to achieve financial independence.