7 things you should know about your employer sponsored life insurance...

1. Coverage Amounts are Minimal.

Although coverage amounts will very from employer to employer, more than likely you will only be offered a minimal coverage amount. Reason being... because employers try to keep their premium costs low while still being able to offer this as a benefit to their employees. This in turn can leave your family and loved ones vulnerable since the coverage amount is usually just enough to cover final expenses and nothing more ... ie: Mortgage, car loan, credit card and medical bills etc. 

2. Not Customized to Your Needs.

When it comes to Life Insurance, every persons needs are as unique as the person themselves. Group plans are geared to the group as a whole and not customized to the individual. Leaving many areas that are uncovered by life insurance. 

3. Not Portable

Employer sponsored Life Insurance can not go with you should you change your place of employment. If you cease working for an employer and do not have a backup policy in place this could be detrimental to you and your family.

4. Benefit Funds are Not Immediate.

In most cases, with employer sponsored life insurance, beneficiaries will not receive the funds for 30 days or more following the insureds death. Private policies typically payout benefits quickly, before the 30 day mark has be reached.

5. No Guarantee.

You are provided with the options that the company you are working for, decides will work for the group as a a whole. Maybe you have an affordable life insurance plan this year but the rate could go up in the following year or canceled altogether. Having a back up policy will ensure you are covered as long as you choose to be, not when your employer chooses. 

6. You may Need More Than Just Term Life Insurance.

Maybe a whole life policy is something that would work best in your situation. Usually Whole Life insurance plans are not offered to you as an option in the group plans.

7. Employee Coverage Only.

With most group life insurance plans you do not have the option to have additional family members covered within the same insurance plan.

Employer sponsored Life Insurance can be a very good thing to have. Especially if your able to receive these benefits at a good premium price or if you are not able to obtain life insurance on your own because of a health problem. See “Some is better than none” post.

Do any of the above statements apply to you? If so... North Coast Life Insurance Company offers a variety of plans that can supplement the coverage your employer provides but does not cover everything that you need it to.

• North Coast – Term Life and Whole Life products feature premiums and death benefits that are guaranteed - (Provided timely premium payments are made per the policy contract).

• The policy is yours and follows you if you change employment or living situation.

• You will be protected whether you are starting a company of your own or between jobs.

• Spouse and additional family member options are available to you.

• Option for premiums to be deducted from your checking account.

Have questions? See more posts under the Life Insurance category on this blog or Try live chat: