Posted on: 11 September 2017
As a full time employee, you probably have life insurance through your place of employment. At this point, many people don't think about life insurance needs anymore. The problem with this is that while life insurance through your place of employment is going to be helpful in the event you pass away suddenly leaving your family behind, it probably won't last long. The reason for this is because life insurance through your work is usually a set amount that is under $50,000 or it's only one or two times your yearly salary. Here are four main reasons you need life insurance on top of the policy you have through work:
- Changes in Work Can Mean Loss of Coverage: If you are laid off or you decide to leave your current place of employment, you can lose your coverage. On top of this, there can even be significant changes in coverage if you decide to more to part time. For this reason, you might have moments in time when you are not covered at all or only covered in a small amount in the event that you suddenly pass, which can be devastating for your family. This is why, having a personal life insurance policy is so important because these gaps can be filled.
- Coverage Can End When You Retire: Many times, your coverage is going to be terminated or it will change significantly because you have retired or you have reached a certain age. This is a major problem because health at this point in your life is weaker, which means that you need life insurance at this point more than ever.
- Employer Can Change Coverage: At any point, your employer can make changes to the life insurance coverage that they provide for their employees. This is because the insurance policy and your employer are the signers of the contract, not you, which means these changes are out of your control. To avoid the possibility of having no coverage because of random changes, it's important to have your own personal coverage.
- Options are Limited: When you have coverage through your employer, you are going to have limited options. This is because the insurance fits the model for all employees, not your specific needs. When you have a family to provide for, chances are, you are going to need more than what they provide.
When you know these four reasons for a personal life insurance policy on top of coverage through your place of employment, you can see why it's best for your family's financial protection.Share