{"id":119569,"date":"2020-05-22T21:35:48","date_gmt":"2020-05-22T21:35:48","guid":{"rendered":"https:\/\/fidelitylife.com\/?p=119569"},"modified":"2020-05-22T21:35:48","modified_gmt":"2020-05-22T21:35:48","slug":"term-life-vs-employers-life-insurance","status":"publish","type":"post","link":"https:\/\/staging03.wordpress.fidelitylife.com\/?p=119569","title":{"rendered":"Term life vs. employer\u2019s life insurance"},"content":{"rendered":"<p>Wondering whether to get group life insurance through work? It\u2019s a nice perk, but it may not be enough to cover your family when it counts. In fact, it\u2019s a good idea to consider getting life insurance coverage outside of your employer. Here\u2019s what you need to know about group life and individual term life insurance options.<strong>\u00a0<\/strong><\/p>\n<h2>Should you buy life insurance through your employer?<\/h2>\n<p>Employer-provided insurance, or group life, is a policy you can buy through your workplace. Company-paid group life insurance is the most common type of insurance benefit, according to an industry study, with <a href=\"https:\/\/www.shrm.org\/hr-today\/trends-and-forecasting\/research-and-surveys\/Documents\/2018%20Employee%20Benefits%20Report.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">85% of companies offering it to their workers.<\/a><\/p>\n<p>Group life typically comes in two varieties: basic and supplemental.<\/p>\n<ul>\n<li><strong>Basic group life insurance<\/strong> is typically a smaller policy with pre-set coverage options and limits that is often paid by your employer. Coverage amounts are smaller and tend to range from $25,000 to several times your annual salary. You can also name a beneficiary for your payout, and coverage is generally guaranteed. Since it\u2019s usually low cost or free, it makes sense to accept it from your company.<\/li>\n<li><strong>Supplemental group life insurance<\/strong>, an option offered by <a href=\"https:\/\/www.shrm.org\/hr-today\/trends-and-forecasting\/research-and-surveys\/Documents\/2018%20Employee%20Benefits%20Report.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">80% of companies<\/a>, simply comes down to extra coverage. With supplemental plans, you can usually buy coverage up to three or four times your salary and may need to fill out a health questionnaire to qualify.<\/li>\n<\/ul>\n<p>One of the upsides of group life is that it\u2019s often low-cost or even free, since your employer subsidizes most of the cost. With no medical exam and guaranteed acceptance in many cases, life insurance through work is also easy to qualify for and buy. But if you\u2019re counting on your employer\u2019s life insurance as your primary form of coverage, keep these caveats in mind:<\/p>\n<ul>\n<li><strong>It stays with the job. <\/strong>Unfortunately, this type of plan usually requires you to stay employed by the company to keep your coverage. That means if you change jobs \u2013 something <a href=\"https:\/\/www.gallup.com\/workplace\/231587\/millennials-job-hopping-generation.aspx\" target=\"_blank\" rel=\"noopener noreferrer\">21% of millennials <\/a>have done in the last year \u2013 you could end up unprotected. With unemployment levels rising, an unexpected layoff could also leave you without coverage.<\/li>\n<li><strong>Limited options.<\/strong> Employers usually offer a standard one-size-fits-all plan, which may not work if you have specific medical needs or need more flexible life insurance.<\/li>\n<li><strong>Lower coverage amounts.<\/strong> On average, households with just a group life insurance plan <a href=\"https:\/\/www.limra.com\/en\/newsroom\/industry-trends\/2017\/maximizing-the-potential-of-the-underinsured-u.s.-life-insurance-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">have $225,000 less<\/a> in coverage than they need.<\/li>\n<\/ul>\n<h2>What are the benefits of term life vs employer&#8217;s life insurance?<\/h2>\n<p>Buying your own individual <a href=\"\/life-insurance\/term-life-insurance\/rapidecision-life\/\">term life policy<\/a> from an insurance company to supplement group life is often a smart move. The most popular and affordable choice for life insurance, term life insurance plans provide coverage for anywhere from 10 to 30 years. If you die during that time, your family will receive a cash payout to replace your income, cover the mortgage, pay down credit card debt, or use however else they need.<\/p>\n<p>With an individual term life policy, you can stay covered if you change jobs and customize coverage to your needs. If you\u2019re in good health, an individual plan is also often more affordable than a similar group life policy.<\/p>\n<p>Making the right choice when it comes to choosing a reliable life insurance company is easier with Fidelity Life. We\u2019re here to answer your questions and walk you through your options. <a href=\"\/life-insurance-basics\/term-life-insurance-101\/term-life-vs-employers-life-insurance\/#get-quote\">Start your quote<\/a> or <a href=\"https:\/\/fidelitylife.com\/support\/\">give us a call today<\/a>.<\/p>\n<p><i><br \/>\nAt Fidelity Life, our goal is to make life insurance simple, affordable, and understandable for everyday families. This content is intended for educational purposes only. Each post is carefully fact-checked, reviewed, and updated regularly to ensure the information is as relevant as possible.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wondering whether to get group life insurance through work? It\u2019s a nice perk, but it may not be enough to cover your family when it counts. In fact, it\u2019s a good idea to consider getting life insurance coverage outside of your employer. Here\u2019s what you need to know about group life and individual term life [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-119569","post","type-post","status-publish","format-standard","hentry","category-term-life-insurance-101"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Term Life vs. Employer&#039;s Life Insurance | Fidelity Life<\/title>\n<meta name=\"description\" content=\"Many employers offer life insurance as a benefit to their employees in place of a term life insurance policy. 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