Affordable Life Insurance Protection for Your Family

Why Buy Life Insurance Outside of Work?

If you are employed and have group life insurance coverage through your employer, you may be wondering if you should buy your own individual life insurance policy outside of work?

It’s an important question to consider, especially if you are married or have children.

Although it’s good to have employer-provided life insurance through work, it may not be as good as you might expect.

For instance, did you know that if you leave your job for any reason, your life insurance does not go with you?

And, did you know that you may be able to get better rates on life insurance separate from the group coverage you have now?

Also, the amount of coverage available through work may not be enough to properly protect your family. 

These are all very important considerations when determining if you should have your own life insurance policy separate from the group coverage through work.


Reasons to Buy Life Insurance Outside of Work


  • Ownership – You own the policy and it goes with you no matter where you work.
  • Insurability – You are guaranteed protection for the life of your policy, not just while you are employed.
  • Guaranteed Premiums – You lock-in rates for the life of your policy.
  • Guaranteed Coverage – You are guaranteed protection for the life of your policy, regardless of your health or employment.
  • Amount of Coverage – You can purchase a lot more coverage than would be available through your employer-provided plan.
  • CostRates are more competitive, especially if you are healthy and take a medical exam.
  • Spousal Coverage – You may add coverage for your spouse to your own policy. 


The biggest reason to buy life insurance outside of work is so that you do not lose the life insurance when you leave your place of employment.

This is not to say that you should not take advantage of the group life insurance plan offered by your employer. It’s just a good idea to supplement your group coverage with a private plan, so that you will be sure to have protection even if death occurs long after you retire, leave that job, or go on Disability. 

One reason to get your own individual life insurance policy would be ownership

With group insurance, if you leave your employment you lose your plan. But, if you own your own policy, you are in control and can take it with you.

Your employer-provided coverage may not be enough to adequately protect your growing family.

Many employer life plans offer up to 1-2 times your annual salary in coverage. So, if you make $50,000 per year, you may be limited to $100,000 of life insurance protection.

However, this may not be enough to protect your spouse and children if you were to die unexpectedly. But with your own policy separate from work, you may purchase up to 10 times your annual income or more, to provide the protection your family needs.

Your employer could cancel or make changes to the group life plan without your consent.

For example, at renewal your employer may decide not to pay for any of the cost of life insurance for employees, and you would have to pay all of the premium for your coverage if you wish to continue through your group plan.

This happens at times when a business needs to cut costs.

You want your own plan because you want to own it and keep it. You don’t want to lose it when you either retire, quit or get fired. It is yours and is "transportable".

It allows you to select from the many different types of life insurance policies available on the market. The choices are all yours when you select it yourself, outside of work.


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Why Buy Life Insurance Outside of Work

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