I just heard a story about group term insurance the other day. A man who developed cancer was so sick that he couldn't return to work. When his job ended, his group life insurance did as well. He died with out life insurance. He thought he had plenty since his employer provided his life insurance.
Most people don't realize that their group life insurance may end when their employment is up. They also don't realize that when you reach retirement age that insurance premiums are higher and the possibility of being rated higher increases.
Having group term coverage through your employer is great. But you should not rely on that as your sole source of life insurance. 99 time out of 100, it's not enough coverage anyway. Owning your own policy is the way to go. When you buy it through your employer, they own the policy and consequently get all the living benefits of doing so.
Suze Orman on Mortgages
14 years ago
