Why your company life insurance is probably not enough
Some Canadians are fortunate enough to get great workplace benefits. These often include health and dental coverage, a company pension and company share ownership options. Another common benefit is company life insurance (known in the industry as group life insurance).
There are several advantages of company life insurance:
- It’s usually low cost.
- You’re typically covered as soon as you join the company or after a specified waiting period.
- You’re guaranteed to be accepted (up to the maximum amount allowed without completing a medical questionnaire).
- It’s easy to apply for.
Not surprisingly, workplace life insurance is popular. Over 60% of Canadians who have life insurance coverage get it through their employer. However, this next stat is where the issues start: over half of those people only have company life insurance.
Given that workplace life insurance coverage is typically limited, most people have inadequate coverage. Let’s take a look at how much life insurance you actually need and what your life insurance options are.