Is group life insurance through my employer enough?

If your workplace offers life insurance, that can be a great and reassuring benefit. But while group life insurance through an employer is a solid starting point, it may not offer enough protection when you need it the most.

As life gets more complicated with mortgages, families, and long-term goals, so does the need for coverage that truly fits. In this guide, we’ll walk you through the ins and outs of group life insurance, where it shines, and when it makes sense to consider adding additional personal coverage alongside it.

What is group life insurance?

Group life insurance is coverage usually arranged by an employer, union, or professional association employer, often provided at no cost or at a reduced rate. It’s designed to offer basic financial protection if something unexpected happens while you’re employed there. The coverage amount is usually tied to your annual salary, for example, one or two times your yearly income.

It’s simple, accessible, and convenient. But it’s also limited. For most people, group life insurance isn’t designed to be a comprehensive solution, especially if others rely on your income or you’ve taken on long-term financial responsibilities.

Why you might need supplemental life insurance coverage

Group life insurance coverage is a great foundation, but it rarely accounts for the full picture. If your loved ones need financial support for more than a year or two, it’s worth considering personal life insurance as well.

A stand-alone life insurance policy can give you the flexibility to:

• Choose a coverage amount that reflects your actual needs
• Lock in premiums that stay the same over time
• Maintain coverage even if you change jobs or take time off
• Tailor your policy to your life stage and future plans

At North Cover, we provide affordable, straightforward life insurance designed to give you peace of mind, not just while you’re working, but for every chapter of life. There’s no medical or blood tests required to apply. No long forms – just coverage you can count on.

The benefits of life insurance through your employer

Group life insurance offers several valuable benefits, especially for those who are early in their careers or looking to secure life insurance coverage for the first time.

Convenience

One of the biggest advantages of group life insurance is how easy it can be. In most cases, you’re automatically enrolled once you start a new job or hit a certain milestone. You don’t have to research policies, compare providers, or go through a formal application process. It’s already handled for you, which can be reassuring when life gets busy.

Cost

Group life insurance is typically free or low-cost because your employer either fully funds it or shares the cost. That means you can get a base level of protection at little to no out-of-pocket expense. For people who are just starting to think about life insurance, this can be an accessible way to get covered without adding to your monthly budget.

Limited underwriting

Most group policies don’t require you to fill out medical forms or undergo health checks. This makes it a great option if you have a pre-existing condition that might affect your ability to get personal cover elsewhere. Because this type of life insurance is designed for a group, not just individuals, eligibility tends to be broad and inclusive.

Approval

You’re generally covered as soon as you meet your employer’s eligibility criteria, with no waiting period or lengthy sign-up process. That immediate access to coverage offers peace of mind, especially if you don’t have another policy in place.

The risks of life insurance through your employer

Group life insurance is useful, but it’s important to understand its limitations, especially if it’s your only policy.

Limited choice

Because your employer selects the insurer and policy terms, you won’t be able to customize the coverage. That means you can’t adjust the benefit amount, add extra protections, or choose features that suit your situation better. It’s one-size-fits-all, which may not match the size or shape of your life.

Limited coverage amounts

Most group policies only provide one or two times your salary in coverage. For many families, that’s simply not enough to handle ongoing costs like the mortgage, bills, school fees, or childcare. It’s designed to help with immediate needs, not to replace years of lost income or provide long-term support.

Premiums aren’t fixed

If your employer offers the option to increase your cover through work (sometimes called voluntary life insurance), the premiums often increase with age. That means you could end up paying more every year, unlike personal policies, where you can lock in a fixed rate when you’re younger and healthier.

It doesn’t move with you

This is the most critical limitation of group life insurance.

If you leave your job, whether by choice, redundancy, or retirement, your coverage usually ends too. Some group policies can be converted to personal ones, but this often comes at a much higher cost and may require new underwriting. If your health has changed since starting the job, you may find it harder to replace that coverage later.

How to choose the right life insurance coverage

Group life insurance is a helpful piece of the puzzle, but it’s rarely the full solution. A personal life insurance policy gives you the freedom to plan for your family’s future, regardless of where you work or how life changes.

Here are a few questions to consider:

• Would your current coverage last your family more than a year or two?
• Do you want to lock in your premiums while you’re young and healthy?
• Are you planning any career changes, parental leave, or self-employment?
• Would you feel more confident with a policy you own and control?

If the answer to any of those is yes, personal life insurance can help bridge the gap and give you lasting peace of mind.

Get a free quote today

Group life insurance is a great foundation, but when it comes to protecting your loved ones, you deserve a plan built around your lifestyle.

At North Cover, we make it easy to get the life insurance you need, on your terms. Our policies are simple, flexible, and designed to support you as life changes.

Get a free quote today and take one confident step toward a future that’s fully covered.