Q: Should I Purchase Additional Term Coverage Outside Of My Employer’s Group Plan?
If your employer is paying the cost of your life insurance plan then it is only to your benefit to accept it. If you have to incur a cost then you certainly should compare it with the cost of the other plans outside of the group. Many times a group plan can be easy to enroll in but the costs are actually more expensive depending on the overall age of the group. Even if your Employer plan has cost benefits, Dave feels that you should have no more than 50% of the coverage you need through your employer group plan. This is because most plans are not portable. Therefore, if you leave employment you will either lose your coverage or have to medically re-qualify at a time when you need the coverage the most. If your plan is convertible, in most cases it means you can take it with you, but have to change to a cash value plan, which Dave is adamantly against and should be avoided unless you cannot qualify for a Term Life plan individually. Additionally, many group plans also have benefit reductions as you get older, usually dropping the benefit coverage when you reach age 60 or older. Though employer group rates may be lower, the pricing of these plans ten to only be guaranteed for two year periods compared tot he level term plans Dave recommends of 15 or 20 years. By visiting our website you can compare rates online or call us toll free at 900-356-4282 for personal assistance.