Positives and Negatives of Securing Life Insurance Through Work

Understanding the pros and cons of getting life insurance from your employer.agent going over coverage with policyholder

Today, many employers offer their staff life insurance coverage as part of their employee benefits package.  While accessing this coverage sounds like a no-brainer, it’s important that you understand the strengths and weaknesses of life insurance through work.  Here’s what you need to consider about this life insurance option.

  • Positives

The three main advantages of purchasing life insurance from your employer are convenience, price, and accessibility.  Employer-offered life insurance is relatively easy to secure, and this makes it an attractive option especially if you do not have other life insurance protections in place.  If you do not already have a personal life insurance policy, then securing coverage through work is a quick and relatively hassle-free way to get coverage.  Additionally, because your employer is absorbing some of the expense of this coverage, you can also access it at a very low cost to you.  Finally, when you get life insurance through your employer, you will have an easier time getting approved, even if you have existing medical conditions.  When you get life insurance through your job, no medical exam is required, and you are often able to secure affordable rates even after disclosing your medical issues.

  • Negatives

One of the main cons of employer-offered life insurance is that you are unlikely to remain at your current job forever.  When you leave your company, there’s a good chance that you will lose the life insurance coverage you have through them.  Even if your company offers you the opportunity to convert your coverage into a personal policy, your rates will increase so significantly that you may be unable to continue paying for coverage.

Another major disadvantage of getting life insurance through your job is that you often have more limited coverage options to choose from.  This is why most life insurance experts recommend treating employer-offered life insurance as a supplement to a personal life insurance policy.  This way you are not constrained by the low coverage limits and limited coverage options of your work’s life insurance plan.

These are some of the pros and cons associated with securing life insurance through work.  Looking to secure the right life insurance policy to protect you and your loved ones?  If so, then contact the experts at VGW Walker Insurance in Texas.  We are ready to get you the coverage that you need today.