One of the most common remarks I hear from people is "I'm covered at work."
Work insurance coverages not only are a foundation for most people's
insurance needs, in most cases, it is their only coverage. The largest
advantages of work coverage, are convenience and a portion is paid for by
the employer. To suggest that group coverage should be the only protection
for you and your family has significant risk and is generally inadequate.
Group coverages through work typically provide a basic level of life
insurance (usually a flat amount - $25,000 or $50,000 or equivalent to one
time salary - not bonuses), Disability, Health (ie prescriptions, etc), and
Dental. Levels vary significantly from employer to employer and often
benefits can be maximized if co-ordinated between both spouses employers.
Group coverage, however, is an annual policy who's pricing and terms change
on an annual basis. Your premiums increase every year because of your age
and if your employer has significant claims the group premiums could also
increase significantly. Most people don't realize this because of the
convenience of being debited bi-weekly directly off your pay.
Group coverage has a number of limitations. Supplementary coverage (ie
increase coverage above the company minimums) premiums increase every year.
Group coverage in most instances ceases when you retire. To get coverage
at retirement age is expensive. If you lose your job, become a contract
employee, you lose your coverage. If you change employers, your coverage
limitations could be significantly reduced. Group coverage generally have
limitations/exclusions on what is covered which most people don't realize
until claims are rejected. Group coverage, especially for disability have
time limitations of how long the benefits will be paid. Group coverage
does not properly reflect the individual family needs of employees and is
generally not sufficient.
Most people are unaware of the true extent of their company coverage, what
they're covered for or for how long. If you'd like a complementary review
to understand what you are covered for through work, how to maximize your
employer benefits (especially where both spouses have coverage) or know of
any family, friends or associates, I'd be pleased to discuss to ensure your
family is properly protected or protected to the degree that you need.