For most people, group insurance is the least expensive form of life insurance if it’s available to them. Thus you should fully exploit all possibilities it provides.
The majority of group insurance programs offer a basic life insurance. To this mandatory protection, you can add complementary coverage for you, your spouse and even your children; all this at an extremely interesting cost.
Insurance companies can provide group insurance at a very low cost because they are assured of the adhesion of the whole group. Mandatory coverage results in very low cost to you.
Ask you employer about the details of your group insurance. You will then be able to compare various group insurance options to other life insurance coverage you could get somewhere else.
Use Term Insurance as a Supplement
If your group insurance does not enable you to cover all your needs, you can use other types of insurance to complement your group insurance. Term insurance is usually the best option.
By the way, group insurance is really a form of term insurance.
Some Details to Consider
On the other hand, you’ll notice that cost of group insurance usually increases according to your age bracket; you have to take into account the rising cost in the long run. However, this bodes very well with the fact that life insurance needs decrease as we grow old. For the same price, your coverage will probably be appropriate for your decreasing needs.
It’s also wise to check what will occur to your group insurance if you leave or lose your job. Most of the time, your coverage will be maintained for a certain period, generally three months, as a transition period to another job. There are also options enabling you to convert your coverage into an individual insurance.
In the same way, certain group plans are not available any more or become very expensive after retirement. However, that should not be a problem because your life insurance requirements will probably be close to zero when you retire.
Despite the fact that some points have to be checked, group insurance certainly offers you options that are pretty beneficial to you. Don’t miss out on any of it!