Purchase Your Life Insurance
Calculate the amount of life insurance coverage you need, determine whether
to increase your current coverage, and pick the best type of policy for your
needs. Now it’s time to actually get the coverage. You can choose between an
individual or group policy.
Opt into a group policy
Most employers provide group life insurance without underwriting (a medical
exam to show evidence of insurability). In fact, employers can provide up to
$50,000 of life insurance as a tax-free benefit to employees. Group insurance
is a great option if you have health problems that would keep you from being
approved for an individual policy.
Most group life insurance policies can be converted to individual policies
without proof of good health when or if you leave your job, but a converted
policy may be more expensive than an individual policy because you don’t
have to prove insurability.
Go it alone with an individual policy
Individual policies are purchased directly from a life insurance company
or through an insurance broker. Unlike group insurance, you can select the
insurance company, the policy, and the coverage amount.
One of the greatest benefits of individual policies is portability. You don’t
have to worry about losing coverage if you change jobs. And changes in your
health don’t affect your coverage after the policy is issued. Consider an individual
policy for the bulk of your life insurance needs to ensure continued
coverage regardless of changes in your employment or health. Use employerprovided
group life insurance to supplement your coverage.
