{"id":13821,"date":"2022-08-17T10:27:29","date_gmt":"2022-08-17T15:27:29","guid":{"rendered":"https:\/\/johnsonwim.com\/?p=13821"},"modified":"2022-08-17T10:27:29","modified_gmt":"2022-08-17T15:27:29","slug":"life-insurance-employer-benefits-vs-private-policies","status":"publish","type":"post","link":"https:\/\/johnsonwim.com\/life-insurance-employer-benefits-vs-private-policies","title":{"rendered":"Life Insurance Employer Benefits vs. Private Policies"},"content":{"rendered":"
There’s a long list of factors to consider on your road to retirement. And life insurance should be near the top of that list. This blog will go over the difference between group (employer) and individual life insurance and their advantages and disadvantages.<\/strong><\/p>\n As you approach retirement, you’re probably wondering if there are any moves to help your transition all that smoother. More than half of employers offer life insurance as a standard benefit with the option to increase the death benefit amount, but should you purchase more life insurance coverage through your employer, or purchase an individual policy on your own?<\/span><\/p>\n With many questions and possibly retirement anxiety at stake, you may be wondering where you should start. Johnson Wealth and Income Management is here to help you find those answers. Continue reading below to learn more about life insurance employer benefits vs. private policies.<\/span><\/p>\n If you’re thinking about retirement, you may be wondering how you’ll pay for it. Like most nowadays, you might have some debt to pay, like a mortgage or student loans, or a spouse who depends on your income. Insurance transfers the financial risk of life\u2019s events to an insurance company. A sound insurance strategy can help protect your family from the financial consequences of those events. A strategy can include personal insurance, liability insurance, and life insurance.<\/span><\/p>\n For retirees, life insurance <\/a>works the same way as most term or permanent policies: If you pass away, the death benefit is meant to help replace your income and help your beneficiaries pay for your final expenses.<\/span><\/p>\n If you lose your employer-provided life insurance plan when you retire, then it’s important to have an individual policy in place so that your loved ones don’t have to worry about paying off any outstanding debts or other financial obligations. Whether you’re nearing retirement or you’re a recent retiree, there are a few things to consider as you shop for life insurance, including:<\/span><\/p>\n Whether you need further insurance can sometimes depend on the size of the organization you work for. Just 46% of small companies offer a 401(k) or similar plan to employees, compared to 92% of large companies and 89% of midsize companies, a Transamerica study shows<\/a>. Among employers that don\u2019t offer a 401(k) or similar plan, 43% said they\u2019re likely to begin doing so in the next two years, according to the study. The survey illustrates the impact that access to workplace retirement benefits can have: Workers at large companies had saved an estimated median of $96,000 in total household retirement accounts and those at midsize companies had saved $73,000, while employees of small companies had saved just $41,000.<\/span><\/p>\n You can keep the plan you acquired under your employer after you\u2019ve retired. However, there are some stipulations. Most employer-sponsored life insurance plans are term life policies, meaning you\u2019re covered for a set period of time \u2014 in this case, until you leave your place of employment, regardless of the circumstances. That includes retirement. Employer provided benefits, though well-intentioned, can nonetheless be a minefield for misinterpretation. Here are some of the main advantages of getting life insurance through your employer.<\/span><\/p>\n Pros:\u00a0<\/b><\/p>\n Cons<\/b><\/p>\n Private policy life insurance, also known as PPLI, is designed to hold various assets within its insurance structure. Life insurance offers significant tax advantages. Let’s take a look at the following pros and cons below.<\/span><\/p>\n Pros:\u00a0<\/b><\/p>\n Cons<\/b><\/p>\n Navigating your insurance options is one of the most daunting aspects of retirement. But ignoring this costly issue could prove extremely damaging to your finances and quality of life. <\/span><\/p>\nLife Insurance & Retirement<\/b><\/h4>\n
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Employer Insurance & Retirement<\/strong><\/h4>\n
\nIf you\u2019re not sure whether your employer\u2019s group life insurance is portable, add life insurance to your\u00a0checklist of items to discuss with your benefits manager or human resources department.<\/span><\/p>\nPros and Cons of Life Insurance Employer Benefits<\/b><\/h4>\n
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Pros and Cons of Private Policy Life Insurance\u00a0<\/b><\/h4>\n
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How Johnson Wealth and Income Management Can Help<\/b><\/h4>\n