UPDATED: Feb 25, 2020
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My grandfather worked for the same company for over 50 years and, to my knowledge, he never considered leaving. He took pride in his work and relished in the responsibilities and opportunities provided to him by his employer. Times are changing though, and today workers are less satisfied with jobs. According to the Society of Human Resources Management’s 2009 Employee Satisfaction Survey Report, 86% of employees indicated overall satisfaction with their current positions.
Happy Employees Have Benefits
While that number may seem high, only 41% indicated they were ‘very’ satisfied with their jobs. One reason some people may not be completely happy at work is the reduction of important employer-sponsored benefits. In fact, benefits (60%) was listed second only to job security (63%) as one of the top five very important job satisfaction contributors in the survey.
One benefit that seems to be disappearing from company offerings is group term life insurance. According to the Insurance Information Institute, group life insurance premiums represented 5.8% of the total direct life insurance premiums written in 2006. By 2010, that number had dropped to 4.8%.
If you are fortunate enough to have group term life insurance through your employer, it’s important to consider what may happen to your coverage if you lose your job. You may be able to take the coverage with you through a process called conversion. This simply means the group certificate you have is converted to an individual policy in your name. This is typically done with no burden on you to show good health at the time of conversion. However, the cost of the new policy is often considerably higher than what you may have been paying through payroll deductions. And if your employer were footing the bill completely for you, you would obviously be responsible for picking up the tab after leaving the company.
An individual term life insurance policy is a safe way to secure coverage that will stay with you regardless of your job situation, assuming you continue to make the premium payments, of course. This is something my Grandfather did not have to think about 50 years ago, but many of us need to consider today!