Insurance from your employer?

I think it's time to set the record straight about buying life insurance from your employer. First and last tip: Do your research! No one has your best interest in mind more than you. I have yet to see an employer buy the best benefit plan for their employees available. Trust me if they can get you to work for free, they would try it. The same for your benefits..... Take the free stuff/match if it's available, but otherwise get your own ASAP.

Always accept free life insurance if your employer offers it. But if you are healthy and buying life insurance through payroll deduction, you may be paying too much. As a group life insurance plan participant, you are pooled with the unhealthy people in your company who are also buying life insurance and paying the same price. Also for tax reasons, since you paid for the life insurance before tax, your death benefit may be taxable. On top of that, the price of your group plan life insurance increases as you get older. With that being said, get your own policy outside of your employer as fast as possible. Lock in your good health while you have it.

Find out particulars if you already have life insurance through your company. Most life insurance policies you buy through your company will get more expensive as you get older and group life insurance is generally not portable when you retire or change jobs. Find out if the group plan does allow portability, or how the conversion features are handled.

Untill next time, let me know what you think.

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