Currently, more than half of private businesses offer their employees life insurance plans, and nearly all eligible employees are enrolled.1 Even though so many take advantage of this benefit, 50 percent of American households don’t think they have enough life insurance.2 Are they right?
Life insurance purchased through an employer can be a convenient, cost-effective option, and it often doesn’t require a medical exam. However, tying your life insurance coverage to a job could leave your coverage at risk in the event of layoffs or changes in company benefit plans. If you were to get sick or injured and had to leave work, your group life insurance coverage could terminate, just when you may need
So, how do you get the life insurance you need, beyond what your employer may provide?
Close the gap
For many families, personal life insurance may help fill gaps in employer group coverage and provide financial security in case of cutbacks or job changes. You can choose your own insurance provider, lock in rates and have consistent, flexible coverage.
Exactly how much life insurance you need depends on factors such as your assets, your debts, and your family’s other sources of income. You’ll be able to choose between term and permanent life insurance and maybe even receive cash-accumulating benefits.
When it comes to life insurance, cheaper isn’t always better
The cost of life insurance can vary widely from company to company, even for the same amount of coverage. And if coverage appears to be the same, why should you pay more?
Here are some factors to consider when selecting an insurance company:
- Company strength — Life insurance is a long-term investment, so it’s vitally important that you select a provider with a history of financial stability. Companies such as A.M. Best, an insurance rating agency, provide up-to-date information on the financial health of most life insurance companies.
- Company size — Does size matter? Yes and no. Although past performance does not guarantee future results, most of the largest insurance companies have been in business for decades, and some date all the way back to the 1840s. When a company has been in business that long, it’s reasonable to assume that it understands the complexities and nuances of the insurance business, is able to manage risk and grow assets, and has a history of meeting long-term financial obligations. Farmers Life has been meeting its obligations to customers since 1910.
- Agent relationship — Life insurance can be complicated. My goal is to help you find a life insurance policy that best meets your needs based on your family obligations, finances, health, and personal circumstances. Once you purchase your coverage, my goal is to keep the conversation going. We’ll get together annually — or sooner if your life situation changes — and review your policy so you can be sure you have the coverage you want based on your current circumstances.
Life insurance issued by Farmers New World Life Insurance
Company, 3003 77th Ave. SE, Mercer Island, WA 98040.
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