I already have group life insurance from my employer. Do I need more?

I already have group life insurance from my employer. Do I need more?

Yes, Chances are that you probably do want more life insurance than what you currently have available through your employer.

Group Life Insurance

Group life insurance is life insurance that is made available to you through your membership in a group. The most common type of group is an employer group, although some professional organizations also provide group life insurance as well.

Group life insurance is often less expensive than term or whole life insurance since the costs and risks of that insurance are spread across all of the people in that group.

Group life insurance has several pros and cons:

Pros:

  • Less expensive than term or whole life insurance
  • Often does not require a medical examination, so it can be one of the easiest forms of insurance to get

Cons:

  • Life insurance is usually for a limited period of time. If your life insurance is provided by your employer, you usually lose that insurance if you leave your employer for any reason.
  • Usually limited to 1x or 2x your salary. In many cases you will need more life insurance than is available through your employer.

In most cases, individuals will purchase life insurance to supplement that which they get through their group provider. To determine if you need more life insurance coverage, read our Q&A for How much life insurance do I need?

Continue reading our FAQ to learn about selecting a life insurance company.

How do I choose a Life Insurance Company?

A: Choosing a life insurance company can be very difficult, particularly since they all offer the ‘lowest premiums’. There are some shady providers of life insurance and it can be very difficult to be certain that you are purchasing from a reputable establishment.

Fortunately there are a number of ways to evaluate a life insurance company. The most common things that you should look for are:

  • Strong financial condition. You want to make sure that your life insurance company will be in business for as long as you have coverage.
  • Long business history. Insurance companies that have been in business a long time have had to prove that they are financially viable and not based purely on scams.
  • A company that your friends, family and neighbors are satisfied with. Ask around to learn about the good and bad experiences that people have had with their insurance companies. You’ll often learn of a few companies to avoid.

As always, make certain that the people you are doing business with are customer service oriented. If they don’t answer your questions about the policy, or are unclear on anything you probably don’t want to be doing business with them.

We do not have any relationship with the life insurance companies that we review, so you can trust that our comments are unbiased.