If you are working for a company that offers health and life insurance benefits, you are most likely working for a larger business which has bargaining power and in return for offering a company a large number of subscribers, the insurer is willing to drastically reduce the cost of the coverage. When you are comparing job based discount term life insurance with individual policies, you will find that in many cases the life insurance component is not a stand alone benefit but must be added onto a comprehensive benefits package. Thus, even though the individual coverage component is cheaper than if you were to go out and purchase the coverage by yourself, in the end the coverage is costing you more because you need to also purchase the adjunct components of the benefits package. Getting a free life insurance quote may not be a bad idea.
It has been a long held belief that you will save money by relying on your employer to offer you the kind of coverage you desire, but it has become more and more obvious that this is a trend which is experiencing some interesting reversals. To this end there are now occasions when job based coverage may be too costly. Some employees have found that they can find cheaper health and life insurance coverage when purchasing these components individually through a local insurer and then taking advantage of the flexible spending accounts that permit for the use of pretax dollars to pay for such coverage.
This is especially obvious when comparing the cost of insuring a family versus insuring a single employee. When comparing job based discount life insurance versus individual policies, those employees who have a number of dependants most commonly experienced the most savings by choosing the work provided coverage while those who were single and did not have anyone depending on them for health or life insurance coverage were quite frequently paying more than they actually have to. This disparity is now showing a new trend which has individuals opt out of employer plans and instead finds them shopping for insurance quotes online.
Eager independent insurance agents are ready to explain discount term life insurance and in some cases there have even been loosely organized online communities that have entered into a relationship with a large insurer for the sole purpose of experiencing the savings offered to bigger employers but without the need for subsidizing the rates of those who are insuring the families or a large number of eligible dependents.
If you are currently employed and have the option of taking advantage of a company based coverage plan, you will be wise to do your own research and determine if you can purchase discount term life insurance coverage on your own – for less money – or if it will be wiser to simply stick with your employer’s plan. Of course, if you are the kind of individual who is more likely than not to postpone the decision or simply blow it off, you will be best served by spending a little extra and sticking with your company’s plan.
