Employer-offered
Includes features
of both employer-paid
and voluntary-purchased
coverage |
• No medical questions or requirements for
certain amounts of coverage for employees,
spouses and children (can’t be declined in
certain situations)
• Generally, costs less initially for people near
or under age 35, tobacco users or people
with health issues
• May have Accidental Death &
Dismemberment (AD&D) Rider that could
double benefit amount if insured dies
accidentally
• Can get small amounts of coverage
• Often payroll deductible while working for
employer
|
• May lose coverage upon
termination of employment
(unless there’s a portability option)
• Generally, cost will increase as you
get older
• Cost can increase upon
termination of employment
• Maximum coverage amount may
be less than you need
• Limits amount of coverage you
can get for spouse or children
• Coverage usually ends at a certain
age (typically 70 to 75)
|
Individual
Includes features
of both term
and permanent
coverage |
• Generally, lower cost over life of policy,
especially if in good health
• Leaving your employer doesn’t affect your
coverage
• Can lock in your premium for a period of
10 years up to a lifetime
• Can convert individual term insurance to
permanent coverage
• Higher coverage amounts are available
when needed
• Has more rider options
|
• May need to go through medical
underwriting
• Could be declined coverage
• AD&D Rider often isn’t available
• Minimum amount of coverage may
be more than you need
• Generally, higher initial cost for
younger people
• No payroll deduction available
|