Many employees rely solely on their employer-provided life insurance, assuming it’s enough to protect their family if the worst were to happen. While employer-sponsored life insurance is a great benefit, it may be a good idea to consider if it should be your only source of coverage.
A job change, layoff, or career shift could leave you suddenly uninsured, and force you to purchase coverage at a much higher rate later in life. Securing personal life insurance while you’re younger and healthier can be a smart financial move that ensures you have protection no matter where your career takes you.
The Problem with Relying Solely on Employer Life Insurance
Most group life insurance plans provided by employers offer a fixed amount of coverage, such as a multiple of salary, which may not be enough for your family’s long-term financial needs. Even worse, that coverage is usually tied to your job—meaning:
🔹 If you lose your job, you may lose your coverage.
🔹 If you start your own business, you’re on your own for life insurance.
🔹 If your health declines, buying a new policy later could be significantly more expensive—or even impossible to qualify for.
Why Its a Good Idea to Have Life Insurance That You Control
1️⃣ Protection That Stays With You —
No Matter Where You Work
When you purchase a personally owned life insurance policy, you don’t have to worry about losing coverage if you switch jobs, take time off, or become self-employed. You control the policy, not your employer.
2️⃣ Lock in Lower Rates While You’re
Younger & Healthier
The best time to buy life insurance is when you’re young and healthy because premiums are based on your age and health at the time of purchase. If you wait until later—when you’re in your 40s or 50s—you could face higher costs or even be denied coverage due to health conditions.
3️⃣ Ensure Your Family is Covered When
They Need It Most
Many people assume they need life insurance only while their kids are young. But life’s biggest financial responsibilities—paying for college, mortgage payments, supporting a spouse, or leaving behind a financial legacy—often occur in your 40s and 50s.
Purchasing a long-term term life insurance policy when you’re younger helps to ensure affordable coverage during these critical years, even if you develop a health condition later.
4️⃣ Supplement Your Employer Plan
for More Coverage
Even if you keep your job for years, your employer-provided coverage may not be enough. A personally owned policy ensures that your family has enough financial protection, even if your employer-provided plan falls short.
A Smart Strategy: Blend Employer & Personal Coverage
Rather than relying 100% on an employer’s policy, consider a hybrid approach:
✔ Keep employer-provided life insurance for as long as it’s available.
✔ Secure a personal life insurance policy while you’re young and healthy.
✔ Reassess coverage needs as you get older, take on new financial ` responsibilities, or change careers.
Final Thoughts
Life is unpredictable, but securing a portion of your life insurance outside of your job can give you enhanced peace of mind, financial stability, and control over your family’s future. If you wait until later in life, you could face higher premiums, limited options, or even ineligibility.
Take action today—protect your loved ones and lock in affordable coverage while you still can. Reach out to Landsman Insurance Services today to discuss coverage options. Your future self may thank you.