Employers often have a life insurance policy for their staff. Sadly, what is obtainable in your work-supplied policy often isn’t enough to support your family for a long time. Staff is entitled to a fixed amount without any extra cash bonuses (compared to a personal plan). Usually, this fixed amount is 1-3 times your salary. Think about it, how long would the value of this life insurance sustain your family and protect them? Certainly, the idea of having a life insurance policy outside of the one provided through your work is a good one.
The nature of work is changing fast, and the likelihood of people switching jobs still exists. To depend on your employer’s life insurance is to have something unstable, unreliable, and most importantly, insufficient for your family’s needs. The purpose of life insurance is to protect your family financially for a very long time after you have passed on. This is something that most employer’s life insurance policies are not sufficient to guarantee.
There are two types of health insurance policy: term policy and permanent policy. The latter offers lifetime coverage for your family and requires you to calculate how much money you’d need to protect your family in your absence. If you do not know your way around these calculations, we can help you. The point is, a personal life insurance policy puts a lot of consideration into place as to why you need to get optimum coverage. It factors in your health, expenses, income, how much you’d need to survive a timeframe and more. This is a consideration you won’t get from an employer’s life insurance policy. This isn’t because your employer is being unfair, but the company ensures staff for fewer personal reasons.
Advantages of Owning a Personal Life Insurance Policy
- A work-supplied policy would be an added benefit over and above the main plan you are counting on.
- You can make more accurate predictions of your family’s security after you pass on.
- It is comprehensive, providing all the security you need for your loved ones.
- Life insurance secures your loved ones while giving you access to favorable tax treatment.
- The payouts from your life insurance policy would always be more substantial than compensations from a work-supplied policy.
- A personal life insurance policy is an agreement between you and the insurance company, while your work-supplied policy is between your employer and the insurance company. There is no way you’d get the best of what someone negotiates or discusses on your behalf.
A personal life insurance policy will always outperform whatever your employer has to offer you as a life insurance benefit. It is also worth it that you consider the inconsistency that may come with choosing to freelance or switch between jobs as time goes on. At Young Insurance, we work with you and your family to protect you through it all. Our life insurance experts can help you secure quality coverage. Serving Burbank and neighboring cities, contact us for assistance today.