How to Assess Your Employer’s Life Insurance Policy

The growth of the businesses has led to more jobs for individuals. One key factor that has come to influence where you should work is the availability of employee benefits. Some companies offer a varying number of insurance policies including life insurance. However, some do not.

Here we will explain how you can evaluate your employer’s life insurance policy That way, you can ascertain if your employer’s life insurance policy is adequate for your needs.

Check whether the coverage is enough

The cost of employer-provided life insurance policies may be quite low, but it is essential to consider if the policy provides adequate coverage when you are dead. While group term life insurance may be suitable for a single worker with little or no dependents, it may be inadequate for you. So, coverage is an important factor to consider when assessing your employer’s life insurance policy

Confirm if you can modify your life insurance policy

Another problem with employer-provided life insurance policy is the uncertainty of what happens to your life insurance policy if you get a new job. It is essential that you find out if you can convert from group life term insurance to private life insurance even after leaving your employer. If this is not the case, you may have to forfeit your life insurance policy. Apart from that, conversion from group to an individual life insurance policy is usually expensive.

Ascertain if there is any clause in the contract

Owning group term life insurance is fickle as you work with the fewer options provided by your employer. It also means that premium costs may rise or decrease at will. To put it crudely, you don’t have greater control to negotiate or customize your insurance policy the way you want.  Your employer may also choose to cancel the insurance policy at any time. Most importantly, inquire if a clause exists to protect your life insurance policy.

Evaluate if you can include family members

The inclusion of your spouse or children in your employer-provided life insurance policy is a huge advantage. However, this is not the case most of the time.

Assess the types of life insurance policies available

By examining the life insurance policy being offered by the company, you can work with an insurance agent or professional. This will help you to confirm which policy would best suit your needs and that of your family.