Is Your Life Insurance Portable?

September is national life insurance awareness month and I cannot think of a better time to discuss a particularly important question to consider about life insurance through your employer.

I know that a lot of people have life insurance offered through their employer and it is usually inexpensive. However, there is a very important question that you need to ask yourself and that is: “If I were to leave this job for any reason would I still have my employer offered life insurance benefit?”

The reason why this question is crucial is because if the only life insurance you currently have is the plan offered by your employer as an employee benefit and you are no longer employed by that employer then you will lose your benefits including vacation time, PTO, health insurance, life insurance, etc. This lack of coverage leaves you and your family unprotected from the unexpected because you have lost coverage simply for not working for the employer that offered you life insurance coverage.

Find out from your employer if your life insurance benefit is “portable.” For example, if your employer offered life insurance is portable then that means that you keep your coverage when you are no longer working for that employer and regardless of where you work next.

I recommend that you always purchase a life insurance policy on your own along with your employer offered life insurance policy. When you purchase life insurance on your own you can have peace of mind that your loved ones are protected. Furthermore, you will always have life insurance coverage no matter where you are employed at now or in the future.