Life & Disability Insurance
If you’ve been putting off life insurance, the coronavirus is sending you a message loud and clear: crazy things can and will happen. Are you and your family prepared if disaster strikes? More than any other global event, the coronavirus has shown us how important life and disability insurance can be in the face of the unknown. While no one could have predicted the spread of a worldwide pandemic, nearly everyone is familiar with the phrase, “Life happens.” Although we are not in control of our circumstances, there are certain things we can control like the precautions we take in preparation for a potential emergency. If you have been putting off purchasing life or disability insurance, let this pandemic be your reminder to prepare. What are some practical steps you can take? Take a look below.
Explore Individual Coverage.
Group plans have some draw backs, and there are a few reasons to consider purchasing life and disability insurance individually. First, group coverage through your employer generally has capped coverage amounts which may not be enough to meet your personal or family needs. Second, group plans are generally not portable, so once you leave a company, you may lose all of your benefits. In most cases, group policy premiums are generally more expensive than individual policies because group policies require limited or no underwriting which means they take on business as a whole: good and bad financial risks. Thus, group premiums are generally higher as the insurance company is taking on a greater level of risk as a whole. In these cases, individual policies may offer you more coverage, greater continuity, and a cheaper premium.
Talk to Your Employer.
Many employers offer life and/or disability insurance, and group policies can be less expensive than individual policies IF the policy is subsidized. In some cases, group coverage can be more expensive than individual coverage if the policies are not subsidized, so finding out if your group policy is subsidized or not is an important piece of information. Another advantage to group policies is minimal underwriting, which means people with existing health conditions who may not qualify for life and disability coverage on their own may qualify for coverage on a group plan. If you have a policy already, make sure to ask what your policy covers and what it does not. If your employer currently does NOT offer life and/or disability insurance, begin with initiating a conversation. A conversation could be crucial for you and your co-workers in the face of a crisis. If you do not feel comfortable having that conversation with your employer, send us your Human Resources Representative’s name and contact information, and we will inquire about benefits on your behalf.
If you want our 2 cents, our recommendation is that you take advantage of any free options your employer offers and potentially any plans that are subsidized. For most people, life and disability insurance offered through your employer simply is not enough coverage. As a general rule, smart financial planning includes having an individual plan in addition to any group policy you may have. Make sure you and your loved ones are adequately protected in the face of a crisis.
Perhaps this virus is the exact reminder you needed to ensure you and your family are as protected as you can be against the unknown. As mentioned earlier, “Life happens.” Take the necessary precautions to ensure you and your family are prepared to navigate unexpected circumstance when life happens to you.
Call us for rates and assistance in determining the proper amount of insurance to carry. We have a team of professional financial specialists that will be able to help you determine what is best for your family based on your specific needs.
Contact us by phone at: (410) 931-1400, or by email at JohnKoch@Allstate.com.