Is Your Work Life Insurance in Brampton enough?

/ Life Insurance / Feb 3, 2022

As an integral part of employee benefits, you may have been provided a term life insurance policy by your employer in Mississauga. This policy is often known as group insurance not requiring any underwriting, but is that enough for you?

Below are some things to keep in mind when the only life insurance you have is your workplace insurance policy.


The premiums paid by your employer come as a taxable benefit to you.

In case of personal insurance (one that you own personally), you pay for the premium with your after-tax dollars. In both the cases, your beneficiaries get the death-benefits tax-free.

Zero privacy

Would you like your employer to know about the total amount of life insurance coverage you have?

You are entitled to add more coverage to your group insurance plan out of your own pocket, but your employer would know everything about it. Thus, you lose some privacy.

If you have a separate individual life insurance policy along with your employer’s plan, your employer won’t know how much total coverage you really have.

Less coverage

Your workplace life insurance tends to have a small coverage amount. In most cases, it ought to be around once or twice of your salary. But is that really enough especially if you have additional obligations like your kid’s education fees, mortgage, and supporting your family?

You might be able to increase your workplace coverage amount out of your own pocket and get additional coverage for your spouse, but before that, it is always advisable to consider a personal term life insurance plan in Brampton.

You will typically find more features, stronger guarantees, and more importantly, competitive pricing (especially if you are in your late 20s or early 30s). So, always talk to an experienced life insurance advisor before taking the decision of adding extra coverage to your workplace life insurance policy.

Temporary life insurance coverage

As far as your workplace life insurance is concerned, your employer is the owner and is free to make decisions about the policy.

You are just the certificate holder and have really no say in the decisions. The plan can easily be changed without your approval or input.

Your group insurance also ends when you change your job.  But then, you also have the right to convert your group insurance to a personal life insurance policy without giving any proof of your health. The premiums may not look too attractive; but you would at least have some protection while searching for a new coverage.

Also remember

The premiums you pay for your workplace life insurance policy are not guaranteed. Like we said before, your employer can easily change the plan without your approval or involvement. You own just the certificate, not the contract.

To sum up

Your workplace life insurance policy isn’t something invaluable. It can save you in many situations, especially if your health conditions deteriorate making you uninsurable. However, that does not mean the coverage is enough for you and your family.

We would advise you to talk to a life insurance advisor to know whether the current workplace plan you have is enough for you and your family. An experienced advisor would assess your workplace coverage, situation, budget, liabilities, and lifestyle, and come up with the best advice for you and your family at no additional fees or obligations!

Get in touch with us for the best and affordable life insurance plans in Brampton, Toronto and Mississauga

Trust Life & Investments is all about providing affordable insurance options for our customers in Canada. We have over 30 years of experience providing expert insurance and investment advice for both businesses and individuals. Get in touch with our expert financial advisors to know more about affordable life insurance plans. No fees and no obligations! Just a conversation over a cup of coffee!