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What Can DCU Save You?

Employer-Provided Insurance

StreetWise Insurance Guide

Life rings
  • Summary
  • Article

Employer-Provided Insurance

Many employers, as part of employee benefit packages, offer insurance. Employer-provided insurance may include some, if not all, of the following: health, life, short-term disability, and long-term disability.

Advantages of employer-provided insurance

  • The insurance plans are usually group plans.

  • Group plan premiums are usually lower than non-group plans, but you should shop around if possible.

  • The employer may pay some or all of the premium.

  • Premium payments are usually made by payroll deduction.

  • Applicants probably won't have to answer a health questionnaire or pass a health exam.

  • Pre-existing conditions may be covered possibly after a short waiting period.

Disadvantages of employer-provided insurance

  • The plan choices may be limited.

  • The coverage may not be sufficient to meet your needs.

  • The employer may decide to drop coverage or the insurance company may cancel the policy.

  • Most employer coverage ends when you leave the company. When you can retain it, it's often at higher cost.

Group or Individual Insurance Bought Directly by the Individual

If you don't have access to employer-provided insurance, you will have to find your own coverage. If you are lucky, you may be able to qualify for group policies.

Advantages

  • You can maintain your protection even if you change employers.

  • You can compare plans and shop around for the best value.

  • You can choose a plan to fit your needs.

  • Price on life and long term care insurance could be less depending on your age, health, and other risk factors.

Disadvantages

  • Depending on the type of insurance, the selection of group or individual plans available may be limited.

  • You have to pay the full premium, usually in monthly or quarterly payments.

  • For life, health, and disability insurance, you will probably have to answer a health questionnaire and pass a health exam.

  • You can be refused coverage for pre-existing conditions.