Employer provided life insurance is convenient
but you need to be careful!
Many Americans take advantage of the group life insurance provided by their employer. For many Americans it is their only coverage and the only protection their family has in the event of their demise. Many of us value the convenience of employer provided life insurance, but have not considered some of the pitfalls of this approach. We highlight a few key things you need to bear in mind and some strategies to adopt.
The first problem is that employer provided life insurance is in almost all cases not sufficient. Most employer life insurance plans restrict the amount you can have. The life insurance that’s included with your employee benefits is usually only one or two times your annual salary, but most financial experts recommend you have life insurance of five to seven times your annual salary.
Also, even if you can sign up and pay for additional life insurance through your benefits plan, you’re usually restricted to relatively small amounts. These add on amounts can also be very expensive and it is often cheaper for you to buy a separate policy. Our advice is to make sure you have enough coverage, and if necessary supplement your employer-provided life insurance with your own policy.
As with all employee benefits, you are at the mercy of the company you work for, you can work only with the options the company gives you. What’s more, nothing is guaranteed. While you may have an affordable life insurance plan this year, the rate could go up or the plan could be canceled next year. What happens if next year is the year you need that life insurance? If you purchase your own life insurance, you can choose the plan and guarantees that work best for you.
Just like most other employee benefits, if you leave your company, you cannot take employer provided life insurance with you. While you may be healthy enough to qualify for life insurance now, you don’t want to risk leaving your company in the future and then being unable to qualify for an individual policy. Even if your next job offers a policy, there’s the risk that something could happen to you while you’re between jobs. Having your own policy ensures you’ll have coverage as long as you need it and won’t experience any breaks in coverage based on your employment situation.
Looking forward this becomes especially a problem when you retire. Now you do not have any employer coverage and the chances are that because of your age and maybe your health you cannot now afford the rates charged by insurance companies, even if they will even take you. In most cases you would have been much better off if you had purchased life insurance when you were younger.
The nice thing about employer provided life insurance is how easy it is easy to purchase, usually you just complete a form. This compares to traditional life insurance, where you have to complete an application, often have someone take your blood and then wait weeks to hear back. There is now an alternative which is speedy and can be done from your home or work. Instead of waiting weeks, you wait minutes. Rather than old school taking your blood decisions are made through online enquiry. Rather than mailing checks all payments are done electronically and immediately. There are no salespeople, you just go onto the internet and complete the process on your PC or tablet. There are also no follow up telephone calls from telemarketers. The name of this solution is 1ClickCoverage.com.
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MFGSLifePartners.com allows you to select the product and coverage best for you, everything is clearly laid out. The great news is that you never need to deal with any salesman, meetings, phone interviews or exams. This does not mean you are alone; support is there for you via phone or web, you choose how much support you need.
Instead of gathering together all your medical and personal history you just answer a small number of questions about yourself, you will also need your driving license number and either a debit card or your check book. It also helps if you know who you want your beneficiaries to be. All of the information can be entered in less than five minutes. Within a few minutes you will be told if you have been accepted. If you are accepted and most people are, you will then be emailed your policy. Once your payment has gone through you are covered, you have taken care of your family. You can insure your life for up to $350,000, which covers the needs of the vast majority of Americans.
MFGSLifePartners.com also welcomes smokers and non-smokers. Depending on your age you can lock in insurance coverage for up to thirty years, which contrasts with employer based programs.
So our advice is if your employer offers some basis life insurance it is often worth taking but make sure you supplement it with a carefully planned policy that you own and can keep as your life and jobs change over the years.
For more information visit: MFGSLifePartners.com