Lots of employers in America try to lure employees with more than just a paycheck—they throw in some sweet extras too. Alongside popular perks like health insurance and retirement plans, you might even get life insurance through your job. Let’s break down the pros and cons of this work perk!
The Upsides:
- Low Cost - Many employers cover the full tab or chip in, so it’s easy on your wallet.
- Guaranteed Plans - These often let you get covered even with serious health issues.
- Simple Sign-Up - Just fill out a couple of forms, and you’re good to go!
The Downsides:
- Can’t Take It With You - This insurance is tied to your job, so if you leave, it’s gone.
- Timing Trouble - Sometimes people have to quit due to a long illness (right when getting new insurance gets super tough or impossible).
- Small Coverage - Often it’s just one or two years’ worth of salary—not a lot.
- Time Limits - Policies are usually set for 10 years. But what if your health changes or you get older (meaning a new policy would cost a fortune) after that?
- No Serious Illness Protection - No "living benefits" (we covered those bonuses in an earlier post) to help if you get sick.
- Watch Out for Accidental Death and Dismemberment - This only pays out if the death certificate says “accidental death” as the cause—or if the insured loses body parts. Yikes!
Bottom Line:
All in all, life insurance from your employer is a nice bonus to have. But it might not be enough, especially if you don’t plan to stick with one company forever. Take a close look and plan accordingly!
All in all, life insurance from your employer is a nice bonus to have. But it might not be enough, especially if you don’t plan to stick with one company forever. Take a close look and plan accordingly!