Starting a new job is exciting, you may need to adjust to a new lifestyle, different route to commute, a new work environment, new co-workers, bosses, and most importantly new responsibilities at the work place.
Moreover, you may have to make some adjustments with your new employment benefits; maybe your previous job offered you just a health insurance policy, covering only you. Now you may be offered a comprehensive health insurance policy covering you and your family, a group life insurance or disability insurance. However, you may not be sure whether they are real benefits or may be you still need to make some quick decisions in a short period of time. To help you make decisions, here are a few things you should consider .
Life Insurance and a new Job
One of the main objectives of having a life insurance policy is to provide financial security to you and your loved ones. If you are sole bread winner in the family, then financial planning becomes more important. Life insurance serves the dual purpose of providing protection and financial security.
I am covered through a group life insurance policy.
Group life insurance provides insurance to a group of employees through a contract between an insurance company and the employer. It is similar to the types of life insurance that are available on an individual basis, although most companies cover their employees through a term life policy. Usually, a company offers a minimal amount of life insurance - around one to two times your salary at no additional cost to you.
Does that mean I should now discontinue with my individual policy?
While you maybe covered by a group life insurance policy, you should still recognize the need for an individual life insurance policy. Your premium for a new life insurance policy later will only be higher; when you may not be covered by your company (in an attempt to cut costs) or may be looking for a new job. Additionally, you could attempt to use your individual life insurance policy as a savings instrument.
My company/employer does not cover me
If your new employer does not offer group life insurance; you should recognize the need for insurance and may want to consider purchasing an individual policy.
If you have a family that is financially dependent on you, life insurance can be very important. Starting a new job may mean that you have new insurance needs. For example, if your income has increased, you may need to increase your insurance to maintain a consistent relationship between your annual earnings and your coverage amount. But if any of these factors have changed as a result of your move, then you should take steps now to protect you and your loved ones .