Most financial planners do not recommend that employees rely exclusively on group life insurance for family...

Most financial planners do not recommend that employees rely exclusively on group life insurance for family survivor death benefits. Explain their reasons.

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Expert Solution

Group insurance only acts as a supplement to the coverage requirements. The death benefit wil genrerally not be sufficient to cover the needs of the family. There are no individual optional features which enhance the coverage benefits in a group insurance. The benefits are subject to being employed in the organization. The coverage is lost with discontinuation of employment. The employer may fail to renew the insurance which again may lead to loss of coverage. Hence an individual insurance plan is required to ensure sufficient coverage.

jeff jeffy answered 2 years ago

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