According to a new LIMRA study, for the first time in history, the number of individuals with life insurance (108 million) is higher than the number of individuals with life insurance (102 million).Although this statistic may sound good, it actually conceals some important facts that you should be aware of.
1 more statistics than we can see.When you delve deeper, you will find that households with life insurance through their employers have actually decreased from a peak of 54% in 1984 to 46%, so the fact is that the percentage of employers offering insurance has decreased.
2 if any, it may not be enough.Most of the life insurance offered by employers is one to 3 times your salary.So if you make $50,000, having life insurance up to $150,000 would sound like a lot, right?However, if you try to use this money in today’s interest rate environment, you will soon find that it will not go too far.And if your family needs to spend $50,000 a year, what will they do after the third year?I would also add that while your salary may be $50,000, what about your other benefits (such as health insurance)?Employers pay an average of $19,000 a year for health care for an employee of a family of 4.What if your family also has to pay medical insurance out of that $50,000?
3 it is an interest, not a guarantee.The majority of the U.S. population believes that employers should be required to provide life insurance (73%, according to the same study), but the fact is that employers are not obligated to do so.Please bear in mind that just because your employer provides it now does not mean that they will provide it next year or at any time in the future.Many companies are in a cost cutting mode and benefits such as life insurance may be lost without notice.
4 it does not protect your insurability.Think about it if you only have health insurance provided by your employer and your health has changed?Or, what if you lose your job or change jobs and your new employer does not provide life insurance as a benefit?Generally, group life insurance provided by the employer is not portable, which means you cannot carry it with you when you resign.Some people can choose to convert it into permanent life insurance, but what if you can’t afford the option?Purchasing a personal insurance policy can prevent this because it is your property.Therefore, it is important to have life insurance provided by the employer, but do not neglect your greater demand for personal life insurance.