In order to attract better employees, some companies offer a life insurance plan. Because it is a group plan, the premiums are cheaper as the rates are not calculated individually. Although this may seem like a good way to get some cheap coverage, it is mostly deceiving. Before buying life insurance from your employer, there are some questions you have to ask. Is it enough? Most employer sponsored life insurance plans have a limited amount. The benefit is usually equal to your annual salary. This can be enough for someone who is living alone and has no dependents, but for someone who has to take care of a family, the coverage will not be enough! What happens when if I leave my workplace? You lose the insurance benefits. This means that your insurance depends solely on whether you keep your job or not. Some group plans however allow you to extend coverage for a limited period as long as you continue paying the premiums. Can the employer cancel the plan? Yes. If business goes bad, your employer can choose to cancel the plan to save some money. If you get life insurance through your employer, you have little to no guarantee that you will be covered for the next year. When is it a good idea? Group life insurance can be useful for people who can’t qualify for an individual policy. Up till a certain amount, you do not have to provide “evidence of insurability”, which means that you do not have to answer any medical questions or take a medical examination. The coverage amount you can qualify for varies from one plan to another.It is also recommended to get life coverage through your employer if you are single and don’t have any dependents. When is it a bad idea? When the coverage is not enough. If you have a family who depends on your monthly paychecks, the amount of coverage you get from an employer sponsored policy will not be enough to secure your family’s financial future. In this situation, it is best to look for an individual policy.As long as you keep paying the premiums, an individual life insurance policy guarantees you a death benefit. At the same time, it gives you a lot more freedom of choice and you do not lose the policy if you change jobs.In conclusion, buying life insurance through an employer can be useful for people with pre-existing medical conditions and single people who do not need a lot of coverage.