Why Employer-Provided Insurance Isn't Enough

January 30, 2020

farm bureau life insurance

Having employer-provided life insurance—also known as group life coverage—is a desirable benefit, but it may not always be the best option or enough for the big picture. Here are four ways a personal life insurance policy may be a good route for you:

  1. Personal insurance is usually cost effective. Employer life insurance plans base premiums on the age and health of everyone insured at the company. Farm Bureau Insurance of Tennessee bases your rate on you as an individual, which would save you money if you're in good health.
  2. Employee plans are often not enough. We commonly see that the coverage provided by an employer is often not enough to cover needs such a mortgage debt (the average cost in the U.S. is $110,000), student debt, childcare, or future college costs for your dependents.
  3. A personal insurance policy is something you own. One of the main benefits of having your own personal insurance policy is that you control it, and it will be there whether you remain with your current employer or not. Most life insurance options through an employer only last as long as you are employed by that company, and your next employer may not offer life insurance. Not to mention, the cost of life insurance rises as you age, and you never know when you might develop a medical condition that could seriously raise your rates or even make it impossible to get coverage when you need it.
  4. Personal insurance has a few other benefits which include:
    • A guaranteed convertibility period. Usually until the age of 65, the owner of a personal term policy may convert it to a permanent policy without needing evidence of insurability, subject to the terms of the policy. This means you can turn a term policy—which is temporary coverage—into permanent coverage that will last your entire life.
    • An Accelerated Death Benefit Rider. Accelerated benefits, also known as "living benefits," are the proceeds of life insurance policies that are paid to the policy owner if he or she becomes terminally ill, subject to the provisions of the Rider. Unfortunately, those who are terminally ill often lack resources to afford their medical expenses, and this benefit is designed to help meet those needs.
    • A choice of temporary or permanent life insurance coverage. A personal life insurance program can be tailored to fit your exact needs with a range of customizable policy and benefit options.

Remember: there is no excuse for not having life insurance if you have others who depend on you. Talk with your Farm Bureau Insurance agent about a personal life insurance program designed for you and your family's specific needs. Visit www.fbitn.com for more information.

Posted in Life