Why Life Insurance Through Work Isn’t Enough

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You’ve probably heard us talk about life insurance a few times by now.  And maybe you don’t pay much attention because you know that you’re covered through your work insurance policy.  But this could be a big mistake!

Many people believe that life insurance through work is all they need and it turns out to be a BIG problem.  Here’s why…

Life insurance policies through work are usually for a small amount.  Most of these policies are considered nothing more than a burial policy.  They provide $10,000 or less in death benefit, mostly to cover unexpected funeral costs.  And while this is a great thing to have, it is NOT the right protection for a family.  In fact, most breadwinners need a minimum of $50,000-$100,000 to adequately provide for their children (and it rarely costs much more than the work policy!)  

Another downfall?  Work provided life insurance is only available during the time that you are employed by the company.  So when you change jobs that coverage is suddenly gone.  And the kicker?  You’ve gotten older and may not be able to qualify for your own coverage.

Let's say you started with a company when you were 30 and stayed for 12 years.  While you could have locked in a much lower life insurance premium 12 years ago, now you're 42 and will pay a higher rate.  Plus, you've been paying on a policy for 12 years that is now not worth anything!  You could have saved money and had better coverage by purchasing your own life insurance policy.

Life insurance premiums increase as you age (and especially if you have any health conditions).  That means that each year you wait, the price goes up.  So if you received coverage through work for 10 years, you could end up paying a LOT more after you leave the job, then you would if you locked in your private policy 10 years ago.

Plus, there is always the risk of incurring a medical condition during that time that might prevent you from qualifying on your own.   Maybe during those 10 years you developed diabetes or even just gained 20 pounds.  Your own life insurance could be hard to get or might have become unaffordable for your budget due to these issues.  

But all of this can be prevented by locking in your own privately owned policy NOW.  Even if the work coverage is free, it’s worth it to have your own coverage in the proper amount to actually provide for your family.  

Ready to get started?  We just need to know your age, health status, and if you are a smoker.  You don't need to know the details on your current coverage before getting a quote.

Give us a call today at 715-598-9924 and we’ll help you get started with a free no-obligation life insurance quote.  

 

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