Why Should You Buy A Separate Term Plan When Your Employer Already Covers It?

by Jeny Smith Term insurance

We spend a better part of our lives studying in a bid to build enviable careers and live comfortable life. One of the most sought-after things in life these days is to make sure you work at a place that offers a hefty paycheque for the effort you put in. And added benefits like insurance and health plans at work only make the deal sweeter. But we sometimes wonder, is that insurance cover enough? Should you be looking at purchasing a separate or individual term life insurance even when your employer covers it already?

After a lot of deliberation, we have come to the conclusion that it is better to opt for individual term life insurance apart from work insurance. But we also realized that not a lot of people are convinced about the same. They think buying a separate term insurance plan will be a waste of money. This is where we come into the picture. In this article, we are going to try and change that notion by talking about the reasons to buy a separate individual term life insurance despite having an insurance plan covered at work.

Continuation of your employer’s insurance can be unreliable
Employers usually opt for group insurance plans when it comes to their employees. Most of them do that because it offers the business some tax benefits. One of the reasons why you shouldn’t solely rely on these plans is that your employer can choose to discontinue the plan. And then you will be left with no insurance.

The employer’s insurance is only valid till you are employed there
Gone are the days when people would be employed at the same firm all their lives. These days, we are constantly looking for better packages and job opportunities. There are chances that your employer’s insurance will only be valid until the time you are an employee with the company. Once you choose to leave, the insurance plan is canceled too.

You don’t get to personalize your plan
When buying term insurance, experts suggest that you should personalize the plan by adding certain riders to the plan. However, your work insurance is paid for by the company. And since personalization costs extra, your employer may be unwilling to pay the difference. For example, your employer insurance may not cover critical illnesses.

The coverage may not be enough
The coverage plan offered by your employer’s insurance may not be enough for a better financial future for your family.

Buying a separate term insurance plan earlier will be cheaper
And lastly, if you choose to buy individual term life insurance earlier, your premiums will be lower.

We hope these reasons have convinced you to opt for individual term life insurance apart from your employer-provided insurance.