Should I get a life insurance plan even if I have a group insurance?

Should I get a life insurance plan even if I have a group insurance?

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You have a job, and you have signed group insurance with your employer. Great, so you are now covered for many accidents and health issues. However, be aware that this group insurance may have some surprises in store for you. This article will explain the differences between the two plans and why you should get private life insurance. But first, we’ll explain an interesting point that your employer never mentions to you.

Why does an employer offer group insurance?


Your employer has many benefits in offering you group insurance because it brings many advantages to the company:


- It's a great way to attract and retain employees in a business. This is a fringe benefit, just like paid leave and a great way to motivate employees to come to work.

- As an employee, you represent an investment for the employer. He has invested time in training you, so purchasing disability, health and dental insurance is one way to protect the investment you now represent for him.

- Group insurance is a good way to reduce absenteeism and facilitate returning to work as quickly as possible after an injury.

- Your employer will deduct the cost of the group insurance premium as an expense inherent in his or her business.


So should you refuse this collective coverage? Certainly not because it certainly has advantages. This group plan can also consist of health and dental expenses being paid from your pre-tax income, leaving you more money in your hands.

But this collective plan is not entirely designed for complete and comprehensive employee coverage. Like the public health care plan offered in Canada, it covers only basic needs. What about the rest? It's up to you to build your future financial security.


prendre une assurance vie privée

Why should you get private life insurance aside of your group insurance?


First of all, life insurance premiums are subject to tax. No tax deduction for individuals!


Then, as said before, not all situations will be covered: sometimes, you will only have a dental care plan. What if you’re hit by a car during the weekend? Or you have a terrible disease that is longer than you thought?

Do you know the amount you could count on if the worst happened? This insurance amount will not be enough to provide you with complete financial security or cover more considerable health care expenses.

Your employer could also decide to cut costs overnight and no longer offer group insurance. You would then no longer be covered at all!


Likewise, if you decide to leave the company, for another, or to start your own business, you will no longer be insured, and neither will your family.


Finally, there will be a time in your life when you need to buy a life insurance plan: waiting 70 years to shop for a life insurance policy is the best way to pay more or to be denied an insurance plan. Age is also a significant factor in calculating your premiums: it increases as you get older.


Here is everything private life insurance can cover:


- Pay off debts (university fees, mortgage)

- Provide long-term medical care for serious illness

- Pay child support in case of divorce

- Pay taxes on inheritance tax

Do you have enough to take care of your family if tomorrow you are out of work? Buying a private life insurance plan in your name means ensuring financial stability to face the slightest upheaval: serious illness, change of job, or happier events such as marriage or buying a house!


Our advisors can answer all your questions about our wide choice of life insurance policies to support you. They can advise you on what term life insurance is best for you. With a fixed term and lower premiums, Term life insurance by TermLite is often the most suitable policy for young workers. To find out more, you can complete our short quote form to be contacted within 24 hours by an advisor.


Written by Dian Taes

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