Benefits are frequently a deciding factor when assessing employment offers. Employer-provided benefits such as health insurance paid time off, and 401(k) matching are all good reasons to change jobs. But don’t be fooled: free doesn’t necessarily imply the greatest. This is especially true when it comes to group life insurance supplied by an employer. Your family could be at risk if you signed up for your company’s plan and assumed it provided adequate coverage.
There are a few benefits to your company’s group life insurance coverage. You can generally enroll for free or nearly free—which is less expensive than you’d find on your own—and you can sometimes buy additional at a discount. Group insurance plans are extremely simple to qualify for. They won’t do a medical examination on you. This is especially important if you have a pre-existing condition, which might result in higher premiums or the inability to obtain coverage. It won’t take much work, so there’s no reason not to sign up—especially since it’s free. However, this does not imply that your family is fully safe.
Another disadvantage of your employer’s plan is its lack of mobility. When your work expires, your life insurance coverage usually ends as well. Unless you’re staying indefinitely or your position is completely secure, you’ll have to abandon your strategy. It may be possible to stay enrolled after you leave, but it will not be free.
