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Why would someone buy life insurance from a mutual insurance company?

Why would someone buy life insurance from an outside company like New York Life when their own jobs likely provide this type of insurance. Considering a career in insurance and need to know this.

Public Comments

1. Three reasons: 1. Control. At any point in time, to save money, the employer can cancel that group life insurance policy, and the employee has NO CONTROL over that. Additionally, if an employer is in financial straits, they could stop paying the premium, and the policy could cancel, and the employee might never know. 2. Coverage limits. Life insurance through your employer, is typically tied to your salary. It's usually 1x, 2x your annual earnings. For MOST people, this isn't enough coverage to meet the goal (need) for the insurance. 3. Continuity. People job hop like crazy now. Om average, people change employers every five years. Odds are very long, that at the time you die, you won't be with the employer that has your coverage now. Buying a private policy eliminates ALL of these concerns, plus it gives you the flexibility to add different terms or conditions to the coverage, if you should need them.
2. Employer group life insurance is not permanent and it's continued existence is not within your control. It will disappear when you leave your job or the employer can just discontinue that benefit at any time. Typically, those plans also have relatively low benefits.
3. Any of: (a) they need more than there job provides, (b) their job does not provide it, (c) they want insurance that they will be able to keep when they leave the job, (d) they do not have a job, (e) they do not need it, but are willing to buy it anyone to help the person selling it (you), (f) they are not aware that their job provides it, etc.
4. There are several reasons: 1. Dividends. If you are dealing with a mutual company that company will give you dividends at the end of the year. This also means that you are a "shareholder" in the company so most mutual companies will put the client first. 2. Security. At any time an employer can change or discontinue group benefits without notice or consent from the employees. Buying insurance through an independent broker will allow you to have full control as once it's set up, the company can't change the contract as long as you pay the premiums. 3. Post claim underwritting. ALL "group" or "no medical required" type insurances do the underwritting at the time of claim. this means that a person can pay into the policy for their entire life, and when they die, the company will investigate whether there was a pre-existing condition and may not pay out a claim. Owning an individual life contract with most other companies, they will do all the underwritting up front, which will improve the chances of it paying out when you really need it most. Google search it...you'll be baffled at how often claims are denied due to post claim underwritting. 4. When a person leaves a work place (fired, quit, retire, whatever), they may lose all benefits. with an individual policy it has nothing to do with your employer...you can be unemployed and still have the benefits. 5. Coverage amounts. Most work places will have a limit on the amount of coverage they give you. An independent insurance contract will allow you more (as long as you can justify the reasoning for the amount). 6. Gauranteed rates. A group contract is not gauranteed and can change whenever the insurer wants to based on claims history. Once a personal insurance contract is set up with an individual company the rates are gauranteed (with most types of insurance). 7. Personal service form someone who is a licensed professional. When you sign up for group insurance typically you will go through your group adminstrator (the secretary or something) who might have no clue about finances other than what is in the group coverage booklet. Going through an independent broker may allow you the opportunity to get advice on other areas or evne just on the one type of insurance you need from an educated professional that does this for a living 365 days a year...not just once a year for an hour when their company hires someone new. 8. Personal Privacy. Some people hate their jobs...why would you want the place you hate having full disclosure and control of you and your families financial security?
5. You can easily check life insurance quotes in internet, for example here - lifeinsurance.awardspace.info
6. You should properly frame the question first. I think you mean to ask: Why would anyone buy an individual life insurance policy when some jobs offer group coverage? Another question you might be asking is: Why would someone buy life insurance from a mutual company instead of a public company or privately-held company? In addition, I might suggest: Why would someone buy life insurance from a semi-captive agent instead of an independent broker? All these questions deserve your attention. This is a hard business to get started in. Good luck.
7. Insurance you have from your employer usually goes away when you retire, or change jobs. There are limits to the amount of coverage you can have, and it doesn't build cash value. New York Life is the best and strongest Mutual in the country! www.nfgvt.com