zTermLifeInsurance Blog
Wednesday, September 08, 2010
- 29
Mar
2010 -
Employer-Based Vs. Term Life Insurance
Filed Under: Blogging
Sometimes, the decision about what kind of life insurance to purchase is not easy. There are several options that are available to the prospective plan holder, and that can make decisions tough.
Let’s say a 35-year-old man, Mark Potters, is looking for insurance. Mark is married and his wife has just given birth to a daughter, which has him thinking about life insurance. In Mark’s case, however, his employer also offers insurance at a subsidized rate. Should Mark go for the employer-sponsored insurance or term life insurance? The employer life insurance is being offered at a very attractive rate.
Most employer life insurance plans come with a date of expiry that is the earlier among two options: the end date of the plan, or the date the employee no longer works for the company. Unfortunately, this means that most of Mark’s life insurance options should not lie in employer-sponsored life insurance.
Also, signing on to the employer-sponsored life insurance may not work for all. That may even impose an element of risk, as the insurance depends on continued employment with the company, and also the company staying afloat. Term life insurance may be a better option for Mark’s needs.
