Pros and Cons of Group Life Insurance Through Work

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Pros and Cons of Group Life Insurance Through Work

Should you get life insurance coverage through your employer? 

Perhaps you’ve been meaning to buy life insurance but just haven’t gotten around to it yet. If you recently started a new job, you might have a chance to get life insurance through your employer at little or no cost. Many employers offer free life insurance as a benefit, known as group life. Many people jump at the chance of free coverage without knowing the disadvantages behind such coverage. We take a look at the pros and cons of securing life insurance through an employer.


  • It’s convenient. Getting coverage through work can be the easiest way to protect your family.
  • Securing coverage through your employer can often be a good deal in value. Sometimes, they will offer you rates that cannot be beaten by shopping around.
  • People with serious medical conditions may qualify for a much better rate through the group policy than they could get on their own.


  • Most people are unlikely to stay with the same employer for their entire career. Since your life insurance policy will be tied up in your job, if you leave your position, you could lose life insurance coverage. If you are able to convert your group policy into an individual life policy, the cost could go up significantly.
  • Your next job may not offer group life insurance. This means you may have to purchase a policy yourself and face higher rates as you age.
  • Term life insurance is usually offered through work. If you are looking for additional coverage or benefits such as whole life insurance, you should purchase life insurance separately.

 Generally, it is best to secure your own insurance policy so that your family has covered to fall back on even if you leave your current job and lose employer-run life insurance. A professional life insurance agent will help you determine if you need coverage.

If you need help securing a life insurance policy is best for you and your family’s needs, get in touch with industry professionals. Contact Kevin or Marci to get started on securing the right life insurance today!

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