Is Life Insurance Through Your Job Enough?

By Contractors Insurance Agency Archive, Business, Personal Comments Off on Is Life Insurance Through Your Job Enough?

pros and cons of employer-offered life insurance

Many employers offer their workers life insurance coverage as part of their employee benefits package. However, is buying this coverage actually worth it for you?

Here are some of the advantages and disadvantages of employer-offered life insurance to consider.


Main advantages of purchasing life insurance coverage from your employer are convenience, price, and acceptance.

Employer-offered life insurance is relatively easy to secure, making it an attractive option.

If you do not already have a personal life insurance policy, securing coverage through work is quick and relatively hassle-free.

Additionally, because your employer is absorbing some of the expense of this coverage, you can access it at a low cost.

Finally, it is easier to get approved for life insurance through your employer, even with existing medical conditions.

When you get life insurance through your job, no medical exam is required. You are also often able to secure affordable rates even after disclosing your medical issues.


In reality, you are unlikely to remain at your current job forever. When you leave your company, there’s a good chance you will lose the life insurance coverage through them.

Even if your company offers you the opportunity to convert your coverage into a personal policy, your rates will increase  significantly. You may be unable to continue paying for your life insurance.

Another major disadvantage of getting life insurance through your job is that you often have limited coverage options to choose from.

Most life insurance experts recommend treating employer-offered life insurance as a supplement to a personal life insurance policy. This way you are not constrained by the low coverage limits and limited coverage options of your work’s life insurance plan.

These are some of the advantages and disadvantages to consider when it comes to securing life insurance through your employer.

Do you have additional questions regarding your life insurance coverage options? If so, don’t hesitate to contact us at John Scott Insurance. We are ready to assist you with all your coverage needs today.

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