Should You Buy a Term Plan Even if Your Employer's Plan Seems Sufficient?

If your employer is offering you a term cover as a facility,he can always choose to discontinue the plan. Additionally, the coverage offered is linked to the continuation of your job. If you quit the job, the policy is automatically terminated. Furthermore, a group term plan cannot be extended or renewed for as long as you want. The coverage will get terminated once you reach the age of retirement. And moving from an employer term plan to an individual term plan after retirement will always be costlier.

Although the employer-provided term insurance is low-cost or free, the coverage amount of the plan may not be high enough. If your premature demise becomes a financial burden to your spouse and children, the insufficient coverage of such plan will not be enough to secure them financially.

You cannot ignore the fact that- employers can negotiate some aspects of the group term cover directly with the insurer. This may include- limited number of critical illnesses and diseases covered, or minimum and maximum sum assured. This means that you cannot always ensure that any surgeries or critical illness will be covered by your employer-provided plan.

Another problem arises if you require leaving your job because of a health problem. If you rely solely on employer’s insurance and then suffer a medical condition that forces you to leave your job, you may be losing your term insurance coverage just when your family needs it the most.

While employer’s term insurance may look like a good deal, solely relying on this coverage is not in your best interest. Although it is inexpensive and convenient to stick with the coverage, there are notable downsides of this strategy.

The least you can do, therefore, is to secure your family's financial future by purchasing a term plan. Besides, there are ample benefits of term insurance during your lifetime, especially if you are young. Here as some examples:

In a time of grief, the last thing you want is to leave your loved ones in financial strain. So, carry out a term life insurance comparison with your employer’s term plan. Understand whether the term insurance you are getting through work is the best way to provide for your loved ones.

The results will surely depict individual term plan on the winning side. The main reason is knowing that you have control of your policy and not your employer.

More importantly, having a personal term plan will offer superior benefits, and regardless of your employment or employer status, will remain in place and can be tailored to meet your needs.