Life Insurance At Work? Don't Bet On It

Life Insurance At Work? Don't Bet On It

There are two important questions to ask yourself regarding this important subject, if you have life insurance at work:

Is it all yours? Do you own it?

These questions may sound inconsequential, but they can have a big impact if you don't already know the specifics of your work policy.

Let's cover an example:

In this scenario, let’s say you have left your employer of many years for a new self-employed opportunity. (Congratulations!)

During the process of leaving your current employer, you will receive a letter from the insurance company that holds your group benefits package, life insurance policy, accidental death and dismemberment policy and your long-term disability policy. 

Now, if you had come to rely on these benefits, it can lead to an uncomfortable situation once you move on and you’re not sure which of these benefits you can leave with. In this scenario, the insurance company that held your package offers you the option of having a life insurance policy that you own - totally yours. But what happens if they only offer you one of these two options?

  1. You are only allowed to keep it for a one-year term.
  2. You can have a lifetime policy, but for a small amount of insurance coverage.

You had worked with this employer for a long while - who could have known that your options would be so small! Your friend works at the local university, and they will receive 4 or 5 times their salary!

Unfortunately, it is all about the contract. There is no getting around that damn contract!  

If your life insurance policy came from your job, look out! Not only are you unable to own it - you’re also unable to control it.

But this is your chance to take control!

Term life insurance is the cheapest, and most simple to obtain life insurance on this planet. In all my years as a broker, I have never witnessed such advances in the manner in which to acquire term life insurance as we have in place now. In fact, I can now sell you insurance over the phone - can you believe that! It can be as fast as 15 minutes, if your health is good. 

And it is affordable now, too. It can easily cost less than your phone bill! If you’d like, click here to arrange an appointment to see your options.

If you’re curious what your policy may be like, here’s an example client:

  1. 35-year-old male
  2. Non-smoker
  3. Wants to cover the value of the mortgage
  4. Would like coverage for a 20-year period
  5. Coverage amount will be $500,000
  6. Would also like the option to cancel the insurance if he pays the mortgage off faster 
  7. Monthly cost: $35.10 (2017 rates)

This amount is in his budget, and he would like to look at covering his partner as well in case they would pass away prematurely, because their income is used to cover household expenses. They opted to look at the same value:

  1. 32-year-old female
  2. Non-smoker
  3. Wants to cover the cost of the mortgage
  4. Would like coverage for a 20-year period
  5. Coverage amount will be $500,000
  6. Would also like the option to cancel the insurance if she pays the mortgage off faster
  7. Monthly cost: $25.20 (2017 rates)

What expenses are you comfortable with leaving your spouse or partner?

Fill this form here to explore your options.

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