Many different businesses in Womelsdorf, Wyomissing, Myerstown, Robesonia, PA, and the surrounding areas have started to offer life insurance as part of their benefits package for employees. This is a nice benefit, but for most people, this life insurance isn’t enough to cover things that they want to take care of, should they pass. At Stubbs Insurance Agency, we encounter this situation frequently, and while it is a nice benefit, especially when the company is paying for it, it is important to realize a few important details with your company-sponsored life insurance. First and foremost, if you end up leaving that employer, you will likely be unable to continue that life insurance coverage. This means that you will be forced to either find another employer that also offers a life insurance benefit, or you will need to acquire your own life insurance policy. But this is just the beginning. Contact our team to learn more about the importance of having your own life insurance policy in place.
Control Is Out of Your Hands
Life insurance that is offered through your employer is nice, but it isn’t in your control, and this can cause issues because things can change when you least expect them to. One example is if the company decides that they no longer want to offer the life insurance benefit or are looking at cost cutting and decide that this benefit isn’t worth continuing to offer. This means that your life insurance coverage goes away, and the only thing you can do is to get your own policy.
Many times, the life insurance policy that your employer offers you is much less than the recommended level of coverage. While they may offer you two or three times your income in coverage, the standard is really ten times your income for a benefit amount. Especially if you are looking at life insurance as an investment to replace an income, only an amount that is about ten times your income will generate enough investment income to replace that income loss.
Retirement Can End Your Coverage
Many times, your company provided life insurance has limits on either the age of the employee, or will end once you retire. This can have a dramatic impact on your financial planning later in life. The options are limited as well with company provided life insurance, and it doesn’t take your lifestyle into account, and if you want to purchase extra coverage, you may not be able to. Only with your own policy that you control will you have the flexibility to match your needs with the right coverage.
Life insurance through your employer in Womelsdorf, Wyomissing, Myerstown, Robesonia, PA, and the surrounding areas is a nice benefit, but it also comes with a lot of strings attached that need to be carefully thought through. At Stubbs Insurance Agency, we can help explain the limitations of your company’s life insurance, plus show you how affordable it is to have your own life insurance policy that you control. Contact us today to schedule your life insurance review session.
