Job Life Insurance: A Good Start, But Not Enough. Here’s How To Get Your Own…

As responsible adults, we often take measures to protect ourselves and our loved ones from financial hardships amidst life’s uncertainties. That protector instinct is only natural and that’s where the concept of life insurance comes in! And while job life insurance may be offered through your employer, it is typically not enough to provide the comprehensive coverage you need. That’s why we’re talking about why job life insurance is a good start, but not enough, and how you can get coverage that you own and control.

job life insurance

Understanding Job Life Insurance

Job life insurance is a plan where the employee pays for their policy’s entire cost, and the employer usually facilitates the payments. The policy’s face value is often based on multiples of your annual salary. But please note that voluntary life insurance at your place of work provides coverage to the beneficiary only if the employee dies and does not provide living benefits. So while this is an excellent option for some, it’s not not enough for everyone.

Coverage at work is a type of group life insurance and it can come in many forms. Details of the coverage offered will depend on the life insurance company, the employer or organization’s budget and other factors. But each individual employee’s needs are not part of the equation when deciding on what policy will be used for that company.

The Limitations of Job Life Insurance

The primary limitation of voluntary life insurance offered at your job is that it can’t provide a lifetime payout, and it isn’t portable. This means that if you leave an employer for another job or it’s time to retire, that plan will stop or significantly decrease. This means that you could be left with zero coverage. So now you’re older. Did you know that insurance coverage gets more expensive as we age? Plus, what if you get sick at an older age? That’s why it’s better to purchase a policy outside of the voluntary life insurance work covers. This way you can potentially lock in the monthly cost, depending on the top of policy.

Moreover, the amount of coverage is limited to a multiple of your annual salary. So if you have a low or mid-level salary, the payout to your beneficiaries will be minimal, so it probably will not meet your financial needs if you have significant debts or dependants. Most get life insurance to not only pay for their final expenses, but also leave funds for their loved ones. Think about what you want it to do for you and your family!

Also, an employer can decide to drop the life insurance coverage for their employees at any time. Important to note that HR has the option to make changes to the company policies every single year. We have all seen add-ons and removals from health insurance policies at work. The same thing can be done with your life insurance policy!

Expert Tip: You can have more than one life insurance policy at the same time. Many people take the job life insurance because it’s cheap, but they also purchase a separate life insurance policy outside of work.

Benefits of An Individual Life Insurance Policy

The best way to ensure comprehensive insurance coverage is to purchase an individual life insurance policy that’s yours! That means that you own and control it. This policy provides you with the flexibility to choose the coverage amount that best suits your lifestyle and financial goals. Moreover, the insurance payout is not limited and can be used to cover a broad range of expenses, from mortgages and debt payments to college tuition. Additionally, these policies are portable and you can take them with you when you switch jobs.

job life insurance

Main Types of Life Insurance

Whole life insurance is a type of life insurance policy that offers protection for a lifetime. Unlike term life insurance, which only covers you for a limited time, whole life insurance provides lifetime coverage until you pass away. The policy combines a death benefit with a savings component, also known as cash value. This means that when you pay your premiums, money is deducted to pay for the insurance coverage, and a portion is invested to grow the policy’s cash value. The cash value component grows over time with guaranteed interest rates, and it can be accessed later in life as a source of savings or as a source of income. So it does have living benefits as well!

Term life insurance is a type of insurance policy that provides coverage for a specific period of time, typically between 10 and 30 years or up to a certain age. If the policyholder dies during that time, the insurance company pays out a death benefit to the beneficiaries. This type of insurance is often less expensive than permanent whole life insurance policies, making it an affordable option for many people. The premiums are fixed for the term of the policy and can usually be renewed at the end of the term, but at a higher rate. It’s advised to get as a supplemental policy in addition to a permanent one.

How To Get An Individual Life Insurance Policy

Getting an individual life insurance policy is relatively straightforward. Start by working with a life insurance broker to help you find a policy that fits your needs. Consider factors such as age limits, policy limits, and any riders that you may need to add. All of this should be discussed with your broker. The next step is to fill out the application. The broker will do this for you based on the information provided, including medical history. There is an underwriting process, but the goal will be to get you approved. Once that happens, you will need to pay your premiums regularly to maintain your coverage.


Life insurance is an excellent investment that provides comprehensive coverage against life’s uncertainties. While job life insurance may be a good start, it is not always enough for an individual’s specific needs so make sure it’s not your sole coverage. The best way to ensure you get what you want is to invest in an individual life insurance policy that you control and no one else. This option provides you with the flexibility to choose the coverage amount and the peace of mind that comes with knowing that you and your family are protected.

Don’t wait any longer; invest in an individual life insurance policy today, and safeguard your financial future!

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