If you have employer provided group life insurance.
Group term life insurance is a valuable employee benefit and is included in many compensation packages. Coverage may be for a fixed amount, such as $10,000. Or it could be based on a multiple of your income, such as 1½ times annual base salary. Voluntary group term coverage may also be available at an additional cost. While these benefits are valuable, there may be problems with using group life insurance as a single solution to your life insurance needs. Consider the following issues.
- You may have little or no control over the continuation of group coverage. Some companies are cutting group benefits to save money. When a company is purchased, benefits program are often cancelled or changed.
- If you change jobs, the benefits at your new company may be drastically different than the ones you have now. If you start your own business, you will be responsible for providing your own benefits.
- The portability of group life is often limited and may be costly - if available at all.
- It may be difficult to replace lost benefits if your health or other insurability factors have deteriorated.
Your financial representative is trained to help you coordinate your personal insurance and group insurance into a comprehensive plan that fits your needs.