Workplace life insurance can be a useful foundation. Personally owned life insurance can serve a different role. The goal is not to declare one universally better, but to understand how each fits your situation.
Workplace life insurance
Employer-sponsored coverage is often convenient and may be provided automatically or offered as an optional benefit. Coverage amounts may be connected to salary or a fixed amount, and the coverage is governed by the employer plan.
Personally owned life insurance
With an individual policy, the insured or policy owner generally controls the policy subject to its terms. Coverage does not depend on remaining with a particular employer, although premiums, underwriting and policy features vary.
Questions worth comparing
- How much coverage is actually in force?
- Does the amount change with salary or employment status?
- What happens if you leave the employer?
- Who owns the policy and who chooses the beneficiary?
- Is additional workplace coverage medically underwritten?
- How long do you expect the need for coverage to continue?
The answer can be a combination of workplace and personal coverage, or no change at all. Start by understanding the employer coverage you already have.
Information is general and educational. Product features, tax treatment and suitability depend on individual circumstances and applicable terms.
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