I Have Life Insurance At Work, That"s All I Need
Free is good.
Take advantage of it if and when possible.
That doesn't mean it's enough.
Here's why: In most cases, if someone has free life insurance it's provided through an employer as part of a group plan that includes everyone regardless of health and age.
The death benefit is probably in the neighborhood of somewhere between $20k-$100 and that's great if the person dies while still employed there and/or plans to work there the rest of his or her life.
What most people believe is that if they leave the job they're at now, they'll get another job that provides free life insurance or if it's not provided at the next job, they'll decide then if they want to buy insurance on their own.
That makes sense, right? In most cases the likelihood of that plan becoming a reality may work.
However, there are chinks in the armour that most people don't think about: It's not an automatic that everyone can and will qualify for life insurance.
The first problem is that the ability to qualify for and the cost of life insurance are based on two key factors: One's health and one's age-in that order.
Without good health, age does not matter.
OK, so health is not a problem now.
The questions I have are what will be the state of health and will the person be the same age, older, or younger than they are now, if and when the day comes that they must make the decision? What if that day isn't until after retirement? As we age, is it more likely that our health will improve or decline? Here's the worst case scenario: What happens if a catastrophic event occurs in someone's life that severely affects one's health to the point that they can no longer do their job, so they lose their job? What happens to the free life insurance that was provided by the employer? What if they are unable to qualify for their own life insurance? The harsh answer is simple.
There will be no life insurance-period! Many people are under the assumption that they will be able to keep the free life insurance they have if and when they leave their job or if they retire.
That may or may not be the case.
The reality is if they are able to keep the policy, they will probably be in for a major shock when they find out what it will cost to keep it themselves, especially if it's after retirement, and particularly if they are in poor health.
The bottom line is it is best to have one's own policy regardless of what is provided through an employer.
It is the only way for sure to be in control of one's own policy--the earlier in life the policy is purchased the better.
There is absolutely no benefit in waiting.
It's not a scare tactic.
It's the truth.
Take advantage of it if and when possible.
That doesn't mean it's enough.
Here's why: In most cases, if someone has free life insurance it's provided through an employer as part of a group plan that includes everyone regardless of health and age.
The death benefit is probably in the neighborhood of somewhere between $20k-$100 and that's great if the person dies while still employed there and/or plans to work there the rest of his or her life.
What most people believe is that if they leave the job they're at now, they'll get another job that provides free life insurance or if it's not provided at the next job, they'll decide then if they want to buy insurance on their own.
That makes sense, right? In most cases the likelihood of that plan becoming a reality may work.
However, there are chinks in the armour that most people don't think about: It's not an automatic that everyone can and will qualify for life insurance.
The first problem is that the ability to qualify for and the cost of life insurance are based on two key factors: One's health and one's age-in that order.
Without good health, age does not matter.
OK, so health is not a problem now.
The questions I have are what will be the state of health and will the person be the same age, older, or younger than they are now, if and when the day comes that they must make the decision? What if that day isn't until after retirement? As we age, is it more likely that our health will improve or decline? Here's the worst case scenario: What happens if a catastrophic event occurs in someone's life that severely affects one's health to the point that they can no longer do their job, so they lose their job? What happens to the free life insurance that was provided by the employer? What if they are unable to qualify for their own life insurance? The harsh answer is simple.
There will be no life insurance-period! Many people are under the assumption that they will be able to keep the free life insurance they have if and when they leave their job or if they retire.
That may or may not be the case.
The reality is if they are able to keep the policy, they will probably be in for a major shock when they find out what it will cost to keep it themselves, especially if it's after retirement, and particularly if they are in poor health.
The bottom line is it is best to have one's own policy regardless of what is provided through an employer.
It is the only way for sure to be in control of one's own policy--the earlier in life the policy is purchased the better.
There is absolutely no benefit in waiting.
It's not a scare tactic.
It's the truth.
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