I have life insurance at work. Do I need my own policy?
What group life at work usually covers, what happens to it when the job ends, and how to decide whether you want coverage of your own.
- Most employer plans provide one or two times your annual salary, so a 50,000 dollar salary means 50,000 to 100,000 dollars of coverage.
- The coverage ends when the job ends, whether that is a layoff, a resignation or retirement.
- Buy an individual term policy for the difference between what you need and what work provides.
Group life through your job, the coverage an employer buys for its staff, is a real benefit and worth having. It is also usually smaller than people think, and it belongs to the job rather than to you. Whether you need one of your own depends on how much it pays and what happens when the job ends.
How much it usually is
Most employer plans provide one or two times your annual salary. On a 50,000 dollar salary, that is 50,000 to 100,000 dollars. Compare that with a mortgage balance and the years of income your family would need, and the gap is usually easy to see. Our coverage worksheet takes about ten minutes.
It ends when the job does
This is the part that catches people. The coverage stops with a layoff, a resignation, retirement, or a move to a company that does not offer it.
Many plans offer conversion, which means trading the group coverage for an individual policy in your own name. The rate is usually high, because nobody is checking your health first.
The hardest version is losing the job in your late fifties after a health problem. The group coverage ends, and individual coverage has become expensive or unavailable.
Owning your own policy fixes the timing problem
A term policy is one you buy yourself, and it covers you for a set number of years. It stays with you no matter who you work for. The premium, the monthly bill for the coverage, is set by your age and health on the day you buy it, and it stays there.
Buying one while you are healthy and working is the least costly version of that decision you will ever make.
How to layer them
- Keep the group coverage, especially if the employer pays for it.
- Count it toward your total, but do not build the plan around it.
- Buy an individual term policy for the difference between what you need and what work provides.
- Look again after any raise, mortgage or new child.
One tax note
If your employer pays for group life above 50,000 dollars, a small amount shows up on your W-2 as imputed income. Imputed income is money you never saw in your paycheck but are still taxed on. The amount is usually minor. It helps to know what that line is.
We will tell you whether you need more
Bring your benefits summary. If the group coverage is enough for your situation, we will say so. Call our McAllen office at (956) 687 3334, or use the ZIP form on the page. Se habla español.
Common follow-up questions
Can I take my group policy with me?
Sometimes. Some plans allow conversion or portability, two ways to carry coverage past your last day, usually at a higher rate. They are not the same thing, and neither one is automatic. Ask HR for the exact terms in writing before you rely on it.
Should I buy the supplemental coverage my employer offers?
Compare it first. Supplemental coverage is extra group life you pay for yourself. It is sometimes cheaper for smokers or people with health problems, and often more expensive for healthy applicants than an individual policy would be.
Does my group life cover my spouse?
Some plans offer a small spouse and child benefit, often 5,000 to 10,000 dollars. It is not a substitute for real coverage on a working spouse.
How much should it pay?
The death benefit is what your family receives. Most final expense policies here run between $5,000 and $25,000.
What kind of coverage?
Not sure is a fine answer. Your agent will walk you through the difference.
Male or female?
Rates are set separately for each, so this one changes the number.
When were you born?
Age is the single biggest thing that moves a final expense premium.
Any nicotine in the last year?
Cigarettes, cigars, chew or vape. Answering honestly keeps the quote accurate.
Who are we quoting?
So your agent knows who they are calling.
Where should we call you?
One call with your prices. No robocalls, no list selling.
Want a copy by email?
Optional. It means you have the numbers in writing after the call.
By pressing “Get my quote” you agree a licensed McAllen Insurance Group agent may contact you by phone, text or email at the details you provide, including by automated dialing. Consent is not required to buy. This is a request for a quote, not an application, and not an offer of coverage.
Getting your request to an agent
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An agent will call you with the prices. If you would rather not wait, call us now.
Call (956) 687 3334Monday to Friday, 9 AM to 6 PM. Se habla español.
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Gerino Alejos
Licensed insurance agent · License 3128710 · NPN 18243381
Owner of McAllen Insurance Group, an independent agency on North 10th Street in McAllen. Works with clients across Hidalgo, Cameron and Starr counties on Medicare, Marketplace health, life and auto coverage. Se habla español.