Thinking of Canceling Your Personal Insurance for Group Insurance at Work? Read This First!
You just started a new job, and one of the perks is group life insurance and critical illness coverage. You look at the price—it’s super cheap! Naturally, you think, "Why not cancel my personal insurance and rely on this?" STOP! Before you make a decision that could hurt you financially in the long run, here’s what you need to know:
1. You Don’t Own the Policy
Group insurance is tied to your job, not you. If you leave, are let go, or retire, your coverage ends. To replace it, you’ll need to reapply—at an older age and potentially higher cost.
2. Premiums Increase Over Time
Group insurance rates go up every 5 years as part of the plan structure. What seems affordable now will eventually become so expensive that it might not make financial sense to keep it.
3. Coverage Reduces with Age
Many group insurance policies reduce your coverage by 50% at age 65 and completely expire by age 70, leaving you with no protection when you need it most.
4. Future Medical Exams May Be Required
If you need to buy new coverage down the road, both you and your spouse could need medical exams—especially if you want coverage over $100,000. As we age, qualifying for coverage can become more difficult and expensive.
The Bottom Line:
Group insurance is a nice perk, but it’s not a substitute for personal insurance. Your personal policy is yours—it’s portable, locked in at your current age and health, and provides long-term security. Before making any changes, talk to your insurance advisor to understand how group and personal insurance can work together to protect your family.
Don’t risk your family’s financial future for a short-term benefit. Get the facts first!