Life Insurance From Your Employer
/My biggest responsibility as an Allstate agent is to provide financial security to all of my clients. What does financial security mean? To me, it means protecting everything you own as well as the people you love. Most people think of Allstate for their home and auto insurance, but usually not life insurance. Life insurance tends to be ignored, delayed or purchased at work. Commonly, people say they have life insurance through work. While that is a great starting point, it can leave some major gaps in your planning. Here are a few reasons why.
Salary Multiple
The amount of life insurance offered in an employer setting tends to be only 1-2x salary. This is vastly inadequate considering the average family needs 8-10x salary.
Do you and your spouse have life insurance outside of your employers, equal to at least 8x your salary?
Portability
Group life insurance from your employer is only good while you work there. It is not portable – meaning if you decide to quit, retire or get laid-off you lose your insurance. In this economy, that can be a real concern. On the other hand, your own individual policy stays with you for as long as you pay the premium.
Cost
Life insurance at work is usually more expensive assuming you are in good health and could qualify for your own policy. Think about it this: if an insurance company has to guarantee insurance to everyone in a group they have to raise rates to account for the less healthy.
If you are in good health, purchasing life insurance on your own can be more affordable and you can take it with you no matter what happens with your current job.
I am not against group life insurance from your employer because it can be a great starting point, especially if your boss is paying for it. However, individual life insurance tends to be better solution. What’s even better is that Allstate just came out with their Auto/Life Discount for customers with both auto and life insurance. Contact me to see how much you can save!
Want more information? Please visit Matt Elwood - Allstate Insurance to get more information on the Allstate products and services I can offer in Port Angeles, Sequim or anywhere Washington State.
