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Question for the Money Doctors

Question submitted on Nov 6, 2013.

Question

My wife has "Basic" life insurance thru her employer. How does that differ from the other more common types of life insurance?

Answer

This is "company term". Cheap. But if she leaves her job she may lose it. If the company decides to drop this benefit she is out of luck if she wants to replace it at a similar cost. She may suddenly have none at any given time.

Term is less expensive and offers more coverage fort the dollar, but if SHE owns it is hers.

I recommend taking the company insurance but ASLO getting a personal policy that SHE owns and controls.


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