Group Term Insurance Might Not Cover All of Your Compensation

Even if you get life insurance through your job, it might not be enough. Group term insurance usually covers only a part of your salary and doesn't include bonus income or stock compensation.

In this article, we will explain why group-term life insurance might not be enough for you and what you can do to make sure you are fully protected.

What is group term insurance?

Group term life insurance is usually a set amount of money, based on your salary. But it doesn't include extra money you might make, like from bonuses or stock compensation.

This can be a problem if you make more money than your salary. For example, if you make $100,000 in salary and $50,000 in stock compensation, your group term life insurance of 3x salary would only cover $100,000 of your total income. That means if you died, your family would only get $300,000 instead of the $500,000 they would have gotten if your life insurance matched your total income.

If you are relying on group term life insurance as your only life insurance policy, you might not be providing enough money for your loved ones if something happens to you. Group term life insurance usually does not keep up with inflation, so your loved ones could end up with less money than you think.

Add an individual life insurance policy

We recommend supplementing your group term life insurance with an individual life insurance policy. This will ensure that you and your loved ones are fully protected, no matter what happens with your job. An individual life insurance policy can be tailored to fit your specific needs and budget, so you can be sure you're getting the best coverage possible.

No one wants to think about their own death, but it's important to make sure you have enough life insurance in place in case something happens to you. Don't rely on group term life insurance as your only policy. Make sure you're fully protected by supplementing it with an individual life insurance policy.

Try our free calculators

If you're not sure how much life insurance you need, our life insurance needs team can help you figure out how much insurance you need. EGGRS free calculator tool will take into account your family situation, debts, and other factors to help you determine how much life insurance you need.

About EGGRS

EGGRS understands the importance of preparing for unexpected changes while keeping your busy schedule in mind, so we have created an efficient process that anyone can follow.

Our ideal, uncomplicated process allows you to do everything online, including requesting life insurance coverage and receiving it within 20-30 business days. Our services include term life insurance, risk differentiating underwriting, request a quote, and free calculators. Contact EGGRS for more information!