by Guest » Thu Sep 01, 2011 07:50 am
I have recently joined a company. I am not married yet, do I still need a life insurance right now? Also, my employer provides life insurance for employees. I want to know what would be a better option. A life insurance under my employer or a private one, which one gives more benefits?
Posted: Thu Sep 01, 2011 09:55 am Post Subject:
It really depends on what kind of benefits or rather advantages you are looking for.
Policies made under a group life insurance provided by employers, might be a good option for you, if you are looking for things like lower premium rates, part payment or less lengthy screening processes.
On the other hand, an individual policy would be custom made for your personal requirements and therefore would provide a better coverage. Another thing is that you might be left without a life policy when you leave your job.
As to whether you should take a policy or not being unmarried; usually a life insurance is intended to protect the dependents of the insured. In your case, if you have anyone financially depended on you, (parents, siblings etc) then you can definitely take a policy.
Posted: Sun Sep 04, 2011 11:59 pm Post Subject:
As a professional I get this question all of the time. If your employer provides life Insurance it is usually always in your best interest to take advantage of it! Sometime it is even free. However, I would like to caution you not to put all of your eggs in one basket. Having been doing this for 12 years, I find many people that have so faithfully relied on coverage through their job. My mother-in-law was one of these people. While the coverage on the job was cheap, and adequate no worries until she lost her job at 50 years old with health problems that she didn't have when she entered the work force 30 years before. To make a long story short she lost her life insurance policy. Couldn't afford to pay for it. Now at 50 years old, a policy is going to cost more, and be harder to get written because of health concerns. My advice, get at least enough for funeral expenses outside of your workplace. If the company lays you off, or you quit, or you retire, there is something to fall back on. After all you may have others counting on your life insurance in the future. You can never leave your loved ones too much life insurance. Over planning is better than under planning in my opinion.
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