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Undercovered: Ethos Fills Gap in Group Life Insurance Policies

·2 min read

Image by Nattanan Kanchanaprat from Pixabay

After receiving group life insurance through your employer, you thankfully never have to worry about policies again.

Not so fast.

As life insurance company Ethos points out, that group policy might only be covering 1-2 times your annual salary. According to financial experts, you should have a life insurance policy that is 10-12 times your annual income. That’s a lot of potential bills, debts and living expenses that could remain unpaid. That’s why companies like Ethos aim to offer life insurance that is both easy to purchase and customizable to your personal needs.

Ethos offers two types of policies: term and whole life insurance, which can be paired with your workplace’s group life insurance for optimum coverage.

Term vs Whole vs Group Life Insurance

Term life insurance provides coverage for a set period of time, so if you happen to pass away during that time period, your beneficiaries would receive a death benefit (cash payment). This is typically for people who want the most affordable coverage, need temporary additional coverage, or have other short-term responsibilities.

Whole life insurance provides coverage that lasts for the rest of your life and can also be used as an investment vehicle. Because of these traits, whole life policies are typically pricier than term life policies, costing 5-15x more for the same amount of coverage. Whole life policies may be a better option for those who want coverage for the remainder of their lives or a policy that builds cash value over time to supplement retirement income.

Group life insurance places your policy in the hands of your employer, who is essentially the “owner” of the policy. It works like an individual term policy in that you pay monthly premiums to ensure your coverage. However, there are a few downsides. As you age, your premium could increase and coverage can be limited due to employers trying to budget for other benefits as well (like health insurance).

While it may seem convenient, easy and affordable to secure this through your workplace, it’s important to look at supplemental insurance to meet the gaps that group policies can leave behind. One way to go about new life insurance is to get a personalized quote from Ethos that can help you be on your way to a better, more balanced coverage.

Ethos’s fully online application process can even lead to same-day coverage, allowing most users to skip the often tedious medical exams required for life insurance.

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