Individual or Group Life Insurance Policies?

These days it seems everyone is planning for their future. From choosing the right career, to when is the right time to have a family, there will be choices that will ultimately reflect things to come. One of these choices is choosing the right life insurance option for you and your family. Many choose to enroll in their employer-sponsored group life insurance, while others feel they need more. Here are the pros and cons of choosing your employer-sponsored life insurance and finding your own coverage.

Employer-Sponsored Coverage

There are many benefits to choosing life insurance offered by your employer, there are also a few cons that cause people to strike out on their own and find their own coverage.

Pros of Group Life Insurance Policies:

• Cost: This is often the number one reason to choose a group life insurance policy. As your employer is given a group rate, the savings are passed on and you pay less (or even nothing)
• Acceptance: With a group policy, the risks are spread over everyone who has opted into the policy. This means you are guaranteed coverage in most cases. If you choose to raise your coverage, you may be asked to undergo a questionnaire or doctor’s exam to determine your ability to be covered, but in many cases this is rare.
• No Increased Rates: One of the benefits of group life insurance is that it is not individually underwritten. This means you can have the worst health at work but still pay the same rate as the healthiest employee in the company.

Even though guaranteed coverage and low rates are good reasons to choose group life insurance, there are also cons that may make you think twice.

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