Employer Sponsored Group Life Insurance Should Not Provide The Primary Protection For Your Family.



Many employers today offer group life insurance to their employees as a benefit.

Employer sponsored group insurance can be a blessing for some.

However, for most... group plans are inherently too risky to be the primary way to protect your family.

Even though the advantage of... your participating in the group plan at work may seem like a "no-brainer".

There are certain realities that are very important for you to be aware of... when it comes to group life insurance.

The single most important advantage of an employer sponsored group life insurance plan is that...

all eligible employees can obtain coverage through the program... regardless of their personal health.

And...

The single most important disadvantage of an employer sponsored group life insurance plan is that...

you do not own the policy and therefore you are not in control of your protection.

With that in mind... let's start by considering...



What Is An Employer Sponsored Group Life Insurance Plan?

An employer sponsored group life insurance plan is an employee benefit program which provides... life insurance protection on you, the employee... for the benefit of your chosen beneficiary.

Normally... the type of insurance provided is... annually renewable term life insurance or some variation of it.

What that means is... for a fixed amount of coverage... the cost (premium) will increase annually. Or, if not annually... then on some given time interval. Every two years or every three years for example.

Many of today's employers provide such plans for their employees.

It is especially nice if the employer picks up all the cost for the employee. Even though this scenario will amount to a taxable benefit for you... the benefit to you far outweighs what little tax you may have to pay.

Some employers merely offer the plan without paying any of the costs. Some may pick up a portion of the cost. Others may provide a certain amount of coverage, free of charge, and then... provide the opportunity for you as an employee to buy more protection for yourself.

Normally, if your employer picks up the cost of the plan... everyone is enrolled as a participant automatically. In this case, you do not choose participation. You simply benefit... it's all good!



What Advantages Do Employer Sponsored Group Life Insurance Plans Provide?

Guaranteed Insurability.

The single greatest advantage provided by virtually all group life insurance plans is... guaranteed insurability.

In other words, if you are an employee who is eligible to participate in the group plan... you can and will be covered... regardless of your health.

This feature is absolutely crucial for anyone who may have health issues.

In fact, if you have health challenges... a group plan may be the only way for you to obtain life insurance protection.

Not everyone is insurable. Many people cannot obtain their own life insurance protection due to their personal health.

Your insurability is not a right... it is a privilege.

Convenience.

If your employer requires you to pay for your own insurance... your premium payment is simply deducted from your paycheck.

Simple, convenient, no budgeting involved.

Ownership and Portability.

As stated previously...

The single most important disadvantage of an employer sponsored group life insurance plan is that... you do not own the policy and therefore you are not in control of your protection.

This is the reason that you do not actually receive a policy. You are instead simply listed as "a participant".

So... are you wondering...what's the big deal? You do indeed have coverage. You are protected.

The issue is this... you are not in control of your own protection situation.

Your employer is. He owns and controls the policy that protects you... or more correctly... protects your family.

As policy owner... he can do whatever he wants. He can terminate the policy. He can change the policy. You have no control, you have no say.

Protecting your family is much too important to leave it in the hands of your employer.

What if you change jobs? What if you lose your job? What happens to your protection?

Do you have health issues that might make you uninsurable?

Many people have either lost their job or changed jobs only to find out that they are uninsurable. Their families are then left unprotected and at huge risk.

This is why your employer sponsored group life insurance program should not provide the primary protection for your family.

You Must... Own Your Own Life Insurance Policy.

That way... you are in control. If you change jobs... your family is still protected.



So, in summary...

An empoyer sponsored group life insurance program is a great benefit offered by many of today's employers.

Everyone should take advantage of any free protection provided by your employer.

If you have to pay for the group protection... and you are healthy... do not participate.

You will be better off using those dollars to obtain your own policy... outside of the group. Get your own quality term life insurance policy.

Don't delay... don't risk becoming uninsurable... now is always the best time to buy your own life insurance protection.

You must have control of your family's protection.

If you have health issues... then definitely do participate in the group plan even if you must pay for the coverage.

At the same time... talk to a life insurance agent to better determine your insurability. If you are insurable... even on a rated (rated means at a higher cost) basis... you will be better off owning your own life insurance protection.

"Because It Matters"... Jim

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