Should I Buy Extra Group Term Life Insurance Through My Employer?



Group Term Insurance Rates vs Personal Term Insurance!


Protect these toes with low cost term life insurance

Ok, so let’s say you’re 35 years old and have been married for seven years, have two young kids, and just got a great new job in Silicon Valley at Facebook, Google, Groupon, Linked-In, Twitter, Nvidia, or any of the many large employers in the San Francisco Bay Area( this goes for any other part of the country where there are mid to large size employers).  let’s also assume that your spouse is a lawyer at on of the large law firms in the area and specializes in corporate law, is on a partnership track and will make partner in a year or two, and that you have full-time quality daycare for your two little kids, which costs about $2800 per month or more. Let’s now assume that you’re an avid cyclist and you and your friends cycle 60+ miles every Sunday morning up on Skyline Road, which while an amazingly scenic route, features long windy blind corners all over the place.  You and your buddies usually stop at the same roadside cafe for a refreshment at the end of the major uphill crank.  It’s the perfect midway point and there are tons of cyclists pulling in and out all morning long. One Sunday, after a gnarly crank up kings mountain Road, you’re really looking forward to cooling off and tanking up with some caffeine for the easier glide down to Woodside Road.  Except this time, as you’re turning onto Skyline, the big rig truck doesn’t see you and you end up braking to a slide under his rear wheels… Now what?  You’re now gone.  You’ve joined the ranks of a bunch of other Silicon Valley cycling fatalities that happen up on the Skyline Ridge.  You’ve told yourself that it won’t happen to you, that the other riders were going way too fast on the downhill and that they weren’t paying attention to road conditions.  Well, you’ve told yourself a lie. This scenario happens way more than any 35 year old wants to admit.  Recently, one of the early Amazon execs, met this exact fate while cycling on a weekend.  She was not at fault, and she probably didn’t think it would happen to her either.  Problem for you is that you had not had the time to accumulate the same wealth that she had because you’re 20 years younger than she was.  Your salary was $190,000 plus options and benefits and your spouse was earning roughly the same.  The new house in a nice neighborhood in Mountain View you purchased for $2.4 Million and daycare consumed most of your monthly budget.  You were working until 9pm each night.  You have a nanny that picks up the kids and feeds them so that when you and your spouse get home, you can spend some time with the kids and put them to bed without cooking a huge meal, so this is “quality time”. Then you realize that you signed up for the extra group life insurance that your employer offered during open enrollment, which just ended.  Great news!  Bad news is that it’s only $250,000 extra life insurance and that’s not nearly enough.   

You Wake Up and Realize You Should Review Your Group Term Life Insurance

Suddenly you realize that you’re sitting at your desk and reading the WSJ article about the former Amazon exec who just crashed her bike and met an untimely death.  What can you learn from her misfortune?  To start you shouldn’t wait to protect your family with life insurance- that’s a given.  Also, you learned that many employer group supplemental life plans don’t offer the amounts of coverage needed by most professionals and their families who live in major metropolitan areas of the US.  In my scenario above, $250,000 just doesn’t cut it.  Daycare expenses alone plus housing will eat up those benefits very quickly.

What to do now? Compare Term Insurance Rates!

The first thing I think you should do is find out what the term life insurance cost is at work.  Then, what is the maximum you can buy on the group plan?  Now, once you have this information, go here to compare your term group term insurance rates with your own personal term insurance policy that you can get here on your own.  You can pick the type of term plan- you’re in control!  If you like a plan you see, then call us and we’ll be happy to help you any way we can to make sure your have all the information you need in order to protect your family.  Make sure you get your instant term quotes now– you’ll be glad you did!  

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Chris Acker, CLU, ChFC

Chris is an independent life insurance broker located in Palo Alto, Ca. He started helping families and businesses build strong financial safety net in 1985. He earned a BA in history from Williams College in 1985. He Earned the CLU designation in 1989 and the ChFC designation in 1991. He is a past board member of the local chapter of the Society of Financial Services Professional. He has been a member of the National Association of Insurance and Financial Advisors since 1985. Chris resides in Palo Alto with his wife, Carol and daughters Rachael and Samantha. In his spare time he is a regular platelet donor for the Stanford Blood Center and actively volunteers for various organizations and alumni groups.

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