Is Job Based Group Term Life Insurance A Good Idea?
Many an employer offers health insurance to employees at rates that are usually held to be discounted when compared to rates that may be obtained individually. Yet is job based group term life insurance a good idea or is it more of an overrated notion?
- Consider that the packages employers offer are cheaper for those who have many dependants to insure than for the single employee who has nobody to look after. Those working for large employers which offer a plethora of plans will do well to research the least expensive plan options and all of its adjunct benefits and then compare it to individually offered coverage. If the difference is negligible, stay with your employer’s group term life insurance plan. On the other hand, if the cost difference is significant, check on whether or not you can use flexible spending accounts to fund the payment for coverage with an independent agent individually.
- Job based group term life insurance no exam, is sometimes part of a bigger package that also includes health insurance as well as dental and vision care. Check around your local insurers and see how much comparable coverage would cost if you were to purchase it yourself, and then add on life insurance. Is the cost difference small? In some cases, you will be better served if you were to choose your employer’s coverage while in the case of small employers you will find that you might get more for you money if you go it alone.
- Remember that many times the coverage which you are receiving is determined on a national level and what might be a bargain on the East Coast is considered a bit on the expensive side on the West Coast. Take this into consideration when evaluating the rates for your employer’s group term life insurance coverage and shop around to get some quotes yourself. Investigate also the option of joining a group that might be loosely formed by virtue of belonging to a professional organization. Each and every member still pays their own full fees, but because of the bargaining power that comes from belonging to the group, you may find that you get a deep discount on otherwise high rates.
- Purchase group term life insurance with portability in mind. If you anticipate travel on behalf of your employer, signing up for the company sponsored plan is most likely a good idea. In the same vein, if you might put in for a transfer that will place you in a completely new locale away from your local insurance agent, then the idea of having the employer’s plan follow you and provide the term life insurance benefit you need across the country is wise.
Remember that there is no hard and fast answer when it comes to finding the coverage that fits you best and which will cost the least amount of money. Instead, consider your needs before deciding to shop around for group term life insurance coverage or your very own policy.
