Why Is Employer-provided Life Insurance Not Enough

Most working professionals have life insurance covers provided by their employers. However, this coverage may not be adequate if you have dependents to provide for. Moreover, group life insurance ceases once an employee leaves the job.
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Employer-provided life insurance is the norm these days. This facility is a part of the perks which most employers now provide, in order to not only attract good talent, but also towards achieving some degree of employee satisfaction. Employers usually cover their employees under a group insurance policy, which has plenty of advantages, but also some downsides. Here are just some of the reasons which highlight the need of getting an additional life insurance policy over your employer that is necessary.

It rarely provides adequate coverage

One of the most important piece of advice when buying life insurance, is, to take stock of your assets and liabilities, and then decide on the coverage amount. After all, the primary purpose of purchasing life insurance is to ensure that your family gets sufficient coverage. However, this concern is seldom addressed by a group insurance policy which an employer provides. The coverage provided under a group insurance policy is usually based on the employer’s salary, and pre-fixed salary slabs. If an employee is earning an annual income of Rs.10 lakh, they may get an ‘x’ amount dependent on their annual income. However, because requirements and responsibilities differ from person to person, this amount may be sufficient for one person, while being grossly inadequate for another.

Employer-provided life insurance can be withdrawn anytime

Group life insurance plans which are provided by employers, offer coverage subject to yearly renewal. However, this is also just a perk which the employer provides, and can be withdrawn anytime, at the latter’s discretion. For instance, a new board of directors has stepped in and decide to scrap this perk in place of some other. What do you do then? If you do not have an individual life insurance policy, you will be left without any insurance coverage, which is a very unwise thing to do.

Age can drive up premiums

Another important thing to remember when buying life insurance is to buy it when you’re still young, and in relatively good health. If you are relying solely on your employer-provided life insurance policy, then you may be in for an expensive shock whenever you do decide to purchase a life insurance policy for yourself, at a later age. The applicant’s health is an important part of the insurance underwriting process where the insurer decides on the coverage amount, term of the policy, and premiums based on the applicant’s overall condition. As you grow older, your body undergoes natural changes, and your health tends to deteriorate. This is the reason why insurers charge older applicants with higher premiums, due to the higher risk involved, as compared to younger applicants who are relatively healthier.

No option to convert to an individual policy

One of the major drawbacks of your employer-provided life insurance is the absence of the option to convert to an individual policy. This means that you cannot alter your coverage amount as per your needs. Also, your cover will cease as soon as you change your employer. When it comes to group insurance, the employer (provider) decides the terms of the policy and coverage. Also, seldom can employees have add-on riders attached to a group plan to get customised coverage, making the policy of little use.

The facility of group insurance, while it is an important one, is not always sufficient. When getting life insurance, it is most important for the policyholder to assess their financial situation, their family’s needs, and other factors before deciding on the coverage they need. After all, it is your family’s happiness and well-being that is of utmost importance.

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Why Is Employer-provided Life Insurance Not Enough Reviews

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  • LIC Life Insurance
    "Best policy "
    0.5 5.0/5 "Blown Away!"
    LIC has offered a Jeevan Anand policy and i have taken for 5 year before. I am paying premium of Rs. 15,000 on quarterly basis which is sufficient. While getting a policy the agent has given me a clear policy details and their service was good and it has a good policy coverage.
    Was this review helpful? 2
    , bangalore
    Reviewed on Mar 20, 2020
  • LIC
    LIC Life Insurance
    "Good policy"
    0.5 5.0/5 "Blown Away!"
    On one year back, I have taken life insurance from LIC. Since the agent has recommended with all good benefits so I preferred this policy to apply. I have received the hard copy on time. The tenure period of 15 years 2021 getting maturity and i am paying premium on quartely 40,000 which am paying to the agent. It covers up to myself with the sum assured of 7.5L.
    Was this review helpful? 1
    , tirupur
    Reviewed on Mar 20, 2020
  • Max Life Insurance
    "Good insurer"
    0.5 3.0/5 "Satisfactory"
    I taken a life insurance in MAX LIFE on 6 months back. It covers up to myself with tenure period of 35 years. To pay the premium amount there is additional criteria like accidental and for an emergency purpose can do claim at any time, so total amount need to pay of 18K on yearly. They have tied up with many hospitals.
    Was this review helpful? 8
    , bangalore
    Reviewed on Mar 20, 2020
  • LIC Life Insurance
    "Excellent Service"
    0.5 5.0/5 "Blown Away!"
    I have taken life insurance policy of Jeevan Bhima for the tenure of 15 years .The premium is paid through yearly basis and premium is paid by myself through lic office only.This policy is stil active and the policy features and benefits was clealry shared by the agent .
    Was this review helpful? 1
    , indore
    Reviewed on Mar 20, 2020
  • Bharti Axa Life Life Insurance
    "Good service "
    0.5 4.0/5 "Great!"
    On 5 months before taken a life insurance from BHARTI-AXA. The tenure period of 15 years plus 5 years of maturity. My friend has suggested this policy to apply and I received the hard copy on time. The premium amount of 21K need to pay on yearly. The coverage amount of 10L if an emergency or accidental happen other 10Lis applicable. The charge is high when compared to other.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Mar 19, 2020
  • LIC Life Insurance
    "Good "
    0.5 4.5/5 "Excellent!"
    I have taken a life insurance in LIC on 6 years before. The policy of tenure period of 20 years. I am paying premium on half yearly package the amount of 8K which is nominal. While getting a policy my agent has given an information about the policy details. It covers up to myself.
    Was this review helpful? 0
    , darbhanga
    Reviewed on Mar 19, 2020
  • LIC Life Insurance
    "Secured policy"
    0.5 4.5/5 "Excellent!"
    I got Money Back policy from LIC. It was taken on 14 years back. The tenure period of 20 years. The premium amount need to pay on half yearly basis of 2,480 rupees. Evey 5 years I get good returns from their end. So far I have not faced any charge. I use to remainder and update from my agency.
    Was this review helpful? 1
    , darbhanga
    Reviewed on Mar 19, 2020
  • LIC Life Insurance
    "Good"
    0.5 4.5/5 "Excellent!"
    I took a life insurance for myself only from LIC. The policy of Jeevan Mithra which I need to pay of 10K on quarterly basis. I took this policy on 15 years back, when I was a student took this insurance so all the details got from their end on time. Only for investment taken this policy.
    Was this review helpful? 0
    , darbhanga
    Reviewed on Mar 19, 2020
  • LIC Life Insurance
    "Good service"
    0.5 4.5/5 "Excellent!"
    LIC has offered a life insurance for my children. It covers my kids only. It was taken on 2015 which is good policy. The tenure period of 20 years. Agent has given all the details about the policy and also provided hard copy documents on time. The premium amount to pay of around 3K.
    Was this review helpful? 0
    , darbhanga
    Reviewed on Mar 19, 2020
  • LIC Life Insurance
    "Good policy "
    0.5 4.5/5 "Excellent!"
    For my spouse I taken a life insurance policy from LIC on 3 years back. It covers only for her. The tenure period will be 20 years. I use to pay the premium amount of 20K per annum. Since somebody suggested about this policy so I opted for it. The policy is Jeeven Anandh.
    Was this review helpful? 1
    , darbhanga
    Reviewed on Mar 19, 2020
  • LIC Life Insurance
    "Good insurer"
    0.5 4.5/5 "Excellent!"
    I taken a life insurance from LIC on 7-8 years back. They have given the policy of Jeevan Anandh which was covered only for myself. The premium amount which I need to pay of 6K around. The agent has given all the details about this policy. So far I have not faced any charge. To pay the amount I visit branch directly. The tenure period of 20 years.
    Was this review helpful? 1
    , darbhanga
    Reviewed on Mar 19, 2020
  • LIC Life Insurance
    "Good insurer"
    0.5 5.0/5 "Blown Away!"
    I got a money back policy from LIC hence taken on 12 years back. I am paying premium on quarterly package the amount of 6K which is nominal. While getting a policy the agent has given an information about all details and received the hard copy documents on time. It covers up to myself only.
    Was this review helpful? 1
    , rajahmundry
    Reviewed on Mar 18, 2020
  • LIC Life Insurance
    "Very good"
    0.5 5.0/5 "Blown Away!"
    My Aunt is working in LIC, she only suggested me to take this Life Insurance policy. I am paying annual premium of Rs. 30,000 which is auto debited from my account. This policy benefits are clearly explained to my mom and she knows it better than me. Its a money back policy taken last 2 years back.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Mar 18, 2020
  • LIC Life Insurance
    "Good insurer"
    0.5 5.0/5 "Blown Away!"
    On one year back, I have taken life insurance from LIC. Since the agent has recommended with all good benefits so I preferred this policy to apply. I have received the hard copy on time. The tenure period of 20 years. I need to pay the premium on monthly of 3K which am paying to the agent. It covers up to myself with the sum assured of 5L.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Mar 17, 2020
  • LIC Life Insurance
    "Excellent Service"
    0.5 5.0/5 "Blown Away!"
    I have taken life insurance policy through lic agent .This was a maturity benefit policy and the policy tenure is for 15 years and the premium is paid on yearly basis .I am using net banking service as well as mobile banking service both are very user friendly .This was taken for my family benefits and customer service was good.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Mar 16, 2020
  • Max Life Insurance
    "Better Policy"
    0.5 5.0/5 "Blown Away!"
    Taken the life insurance policy with MAX company around 8 years ago. My colleague is suggested me to take the policy from here. The claim ratio is more compared to others. I am paying the premium amount of Rs. 15000 and i will get a sum assured amount of Rs. 3.5 lakhs. In online, i will pay the premium amount without any hassle.
    Was this review helpful? 2
    , nasik
    Reviewed on Mar 16, 2020
  • Reliance Life Life Insurance
    "Average Policy"
    0.5 4.0/5 "Great!"
    Purchased my Reliance life insurance policy last 3 years before. My friend is working as an agent hence he suggested me to take this policy here. Yearly, I'm paying the premium amount of Rs. 15000. They are giving me a sum assured amount of Rs. 2.5 lakhs for the term period of 10 years plan. This policy has tax benefits also.
    Was this review helpful? 0
    , nasik
    Reviewed on Mar 16, 2020
  • Max Life Insurance
    "Excellent Service"
    0.5 5.0/5 "Blown Away!"
    I have taken life insurance policy through Max life insurance .This policy tenure is10 years and the premium was paid on yearly through ECS mode.The policy features and benefits are well known to me since working with Max.I am satisfied with my policy.
    Was this review helpful? 1
    , dehradun
    Reviewed on Mar 16, 2020
  • Max Life Insurance
    "Excellent Service"
    0.5 5.0/5 "Blown Away!"
    I have taken Life Insurance policy through Max Life insurance .Since working with max life i know the policy features and benefits.This policy is monthly income plan and for the tenure of 10 years .This policy premium is paid on yearly basis .I am paying the premium on ecs mode and it is totally for family benefits.I am paying the premium of rs.30,000.
    Was this review helpful? 2
    , dehradun
    Reviewed on Mar 16, 2020
  • Max Life Insurance
    "Excellent Service"
    0.5 5.0/5 "Blown Away!"
    I have taken life insurance policy directly through Max life since i am working with them .This was a monthly income plan and it is availed for family benefits only.I am paying the premium on ECS mode and the premium amount was Rs.50,000.The policy details was clearly shared by the agent and i am satisfied with the service .
    Was this review helpful? 0
    , dehradun
    Reviewed on Mar 16, 2020
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