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Why do I need Life Insurance?

I have been doing some research on Life Insurance but I am still new to this. In my situation I am 30 years old and I have life insurance through work and it is really cheap. From doing all this reading, There is one thing I do not understand. Why do I need life insurance from an insurance company when I have life insurance from work. I guess the argument would be "What if you loose your job?" And my answer would be if I loose my job, hopefully I can find another one and the new job will offer life insurance. And if I cant find another job for an extended period of time I can look into a term life policy. Is life insurance expensive if you get it from work. For my company that's not the case because its a big company and we get really good benefits. But not sure about other companies.

Public Comments

1. You don't need really NEED life insurance. A lot of people don't. All life insurance from work is very cheap. Oten they offer 1 years salary for free, and you pay minimally for extra. IF you need it. Note: You only need life insurance if you have dependents that cannot live without your income. You can also become self-insured. By maxing out your 401K and paying off all debts. Assign beneficiaries to your 401K and all your checking and savings accounts. Note: Some banks don't make you fill out the beneficiary form when you open an account. This is a must...
2. The first question should be whether you need life insurance at all. Not everyone does. Since you could die the day after you lose your job, waiting "an extended period of time" before looking into getting another policy means that that you are risking that you might die first, without insurance. Also, you do not know now that you will be able to get a term life policy when you lose your job. It might be too late then. If, hypothetically, you do decide that you need life insurance, then you need it from a life insurance company, not from your employer because, if you become sick/ill enough that you cannot work and might die, then (1) you will lose your job (because you cannot work), (2) you will not be able to get another job (because you cannot work), and (3) you will also not be able to get a term life policy(because you are sick/ill enough to die).
3. Only YOU can determine what your life insurance needs are. But if you DO need (or want) life insurance, it's a big mistake to depend on employer group life as your PRIMARY life insurance. It can go away at any time for a variety of reasons - so you should regard it only as "icing on the cake." Read the Yahoo Personal Finance life insurance section.
4. Look, life insurance is nothing more than a financial tool. If you don't have a job you need that specific tool to do, you don't need to buy the tool. But. Why do you want life insurance privately, rather than through work? Because then YOU have control. You have NO idea if your employer actually paid the policy last month - or the month before. They have no legal requirement to tell you when they cancel coverage - not in advance, and not retroactively, either. The absolute cheapest life insurance to get, is annual term. It expires every year, and you get a new price on it, every year. That's the kind you get from work - it's a GROUP annual term. It might SEEM cheaper, because your employer is actually paying most of it, but the actual COST is averaged with older, unhealthier people than you - making it more expensive, on a gross basis, than private insurance. But. If you don't have a job you need life insurance to accomplish, you don't need it.
5. a) If you loose your job you just would need to tighten it. b) If you decided that you need life insurance and you only have it through your work then you're a fool to think that if you're going to die it'll only be WHEN you have a job. c) work insurance is expensive in the long run. It tends to go up in 5 year brackets, so if you're going to compare the price, compare it to a 5 yr term policy. And, if you have a 2 year old child and realize that they won't be skilled enough to be working at the end of that 5 years get yourself a real 20 or 30 year term policy at least. d) people that need or want life insurance and only have it through their employment are foolish.
6. life insurance through your job is usually an annually renewable term on a group...thats why its so cheap. you get a certificate of insurance but you do not own the policy. when you quit your job or get laid off/fired whatever you can continue coverage on your own but you'll pay more. usually life insurance through you job covers a % of your annual salary. alot of places that do group life offer you the option to get more life insurance but then you'd have to go through the standard application process that you would go through if you had gotten it on your own anyway
7. Typically with insurance, the less it costs, the less coverage you get. It depends on if you are happy with what you pay and what you will get. i had a great experience with my provider and they could answer your questions better than I could. www.mwaquicklife.net