Enjoy this post today from Natasha as she shares how employer-provided life insurance plans stack up against an individual policy purchased on the open market.
If the company you work for offers group life insurance, be sure to take advantage of this great benefit. Employers are not required to offer life insurance, so if yours does be sure to count your blessings. While having group life insurance is a nice bonus, it would still be wise to consider purchasing additional life insurance on yourself.
Employer-sponsored group life insurance policies are different than individual life insurance plans in these ways:
- There are no medical exams
- They are designed one-size-fits-all
- They have less individual coverage
- They only are in affect while you work for that company
To purchase an individual life insurance policy, you typically need to undergo a medical exam. The life insurance company uses your exam results as one of the determinants of how much your policy premiums will be. The healthier you are, the more inexpensive your premiums.