Should you have two life insurance policies, especially if o

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PostPosted: Tue Jul 07, 2009 5:02 pm   Post subject: Should you have two life insurance policies, especially if o  

I am a divorced mother of 3 young children. I have a good life insurance policy through my job. If I am terminated, my policy will stop instantly no matter how long I've been there. I would like to have another outside my job to have for my children so I won't have to start over with a policy just in case I lose my job.

thigpensilver
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PostPosted: Wed Jul 08, 2009 3:24 pm   Post subject:   

Yes. You should own your own life insurance no matter what your employer provides. You never know when this benefit will cease or if you will be insurable when that happens.

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PostPosted: Wed Jul 08, 2009 10:40 pm   Post subject:   

Fishman poses an excellent point regarding insurability. If you secure a life insurance policy now, then no matter what conditions or medical ailments you have in the future...your family will be protected.



It is always a good idea to have your own policy, and any by your employer should be considered extra (supplemental).

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PostPosted: Thu Jul 09, 2009 5:37 am   Post subject:   

Hi Silver,



Quote:
I have a good life insurance policy through my job. If I am terminated, my policy will stop instantly no matter how long I've been there.




You may be able to convert the group life insurance into an individual life insurance when you leave the job. Hence, you may not actually lose the coverage. Check if that is allowed with the policy.
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jeorge

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PostPosted: Thu Jul 09, 2009 6:59 am   Post subject:   

Yes, you should talk to your carrier help-desk first. If it's possible to convert into individual life policy it's fine. Someone has also suggested you to use your employer's coverage as a supplement.



But I guess it's not mandatory for you to use your employer-provided coverage if you opt for an alternative..am I right?

If so, you could then save some money if the new coverage is a good one.



Steven

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steven

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PostPosted: Thu Jul 09, 2009 11:01 am   Post subject:   

Insurance always needs to be purchased outside of work. In calculating your insurance needs ignore all work coverage. You can lose your coverage when you are terminated. How about the situation when you lose your job because you are too sick and dying? That would be one crummy way to lose insurance.



Work coverage being convertible does not make it fine. Often, it is convertible to permanent insurance. People who have lost their job can't afford permanent coverage.



The good news is that if you are healthy, individual coverage is cheaper than the coverage that you can purchased through work. Work coverage just appears to be cheaper at times. This is because it usually increases in cost every 5 years.



If you are 43, your work policy will increase when you are 45, 50, 55, 60,etc. A 20 year level policy purchased on your own won't have a price increase for 20 years and you don't have to worry about losing coverage.

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