Group Life Insurance Arizona AZ

Reader’s Question:

I am a 27-year old banker in Arizona. I am still single and have no dependents. I already have a life insurance policy which I purchased on my own. An insurance company is offering a group life insurance to my current employer. The company I am working requires its employees to participate in the premiums at minimal fee, though getting the insurance benefit is optional. Should I purchase extra?

Aubrey

Glendale, AZ

I have a nephew in Arizona who did purchase multiple insurance at a young age and he ended overspending for life insurances. I don’t think you like to be in the same situation.

Most insurance experts do not recommend young people in excellent health to purchase extra life insurance from their employers. It can be more expensive than by getting their own, unless there is a group discount being offered.

Some companies shoulder the premiums on their account. In your case, since your employer requires you to participate in the premiums, it is better to settle you’re your active life insurance policy to minimize withdrawals for premiums. By limiting your insurance policies, you minimize your annual withdrawal from your income.

Remember that experts say that your goal should be to withdraw 5% or less annually for premiums to make sure that you are getting more from your portfolio returns.