We depend on our jobs for income, but many of us also get our health and life insurance through our employers. As the recession goes on, more people risk losing their coverage.
People without health insurance are more likely to suffer serious illness and premature death, as bad health interferes with their careers. Losing life insurance can be just as devastating to your family’s finances. Below is a Business Name guide to staying covered during the economic downturn.
Employer-Sponsored Life Insurance: It’s Not Always the Best Deal
Even though many larger employers offer life insurance, it’s generally not the best idea for the following reasons:
It’s just not enough. Most employers that include life insurance in a benefits package offer it in the equivalent of your yearly salary. If you need life coverage, you probably need more than that to protect your family after you’re gone.
It doesn’t go with you. In most cases, when your job ends, your coverage does as well.
It’s expensive. If you can buy coverage above the minimum offered by your employer, you’ll probably pay too much, especially if you’re healthier and younger than most of your coworkers–because you’re paying more for their risk. Most people in group coverage pools just don’t want to take the time to find their own insurance.
It varies widely. Group insurance is offered in age levels, and prices increase every time you reach a certain age. If you buy a level term policy, you can lock in the same payment for up to 30 years.
To avoid the difficulties mentioned above, you should buy your own policy if you can–and now, prices are almost as low as they’ve ever been. Follow these guidelines:
Buy sufficient coverage. Cash-value policies have great returns, but come at a higher price (up to ten times that of term life insurance).
Buy a long-term policy. Rates are higher on longer policies, but you won’t have to worry about your premium going up.
Shop around. There are many places you can go to compare rates from the leading companies.
Life Insurance in Lebanon, PA is something none of us like to think about, but it’s something we all need. To get the coverage your family will need after your death, avoid the pitfalls and follow the guidelines mentioned above. Buy your coverage now, or pay more later.
