Work Life Insurance vs Individual Life Insurance: Which is Better?
- connecttocoverage
- Sep 9
- 2 min read
Compare work life insurance vs individual life insurance. Learn the pros, cons, and costs to choose the best option in 2025.
When people think of life insurance, they often start with the policy offered through their employer—called group life insurance. While this is a good benefit, it may not provide enough coverage. To make the right decision, you need to understand the differences between group life insurance and individual life insurance.
What is Group Life Insurance?
Coverage provided by employers (sometimes free, sometimes discounted).
Typically equal to 1–2 times your annual salary.
Easy to enroll, often no medical exam required.
Pros:
Affordable or free.
Guaranteed acceptance.
Convenient payroll deductions.
Cons:
Limited coverage.
Ends when you leave your job.
No flexibility to customize benefits.
What is Individual Life Insurance?
Purchased directly from an insurer or broker.
Coverage amounts are flexible ($100,000 to $5 million+).
Policy follows you regardless of job changes.
Pros:
Portable and permanent.
Higher coverage options.
Customizable with riders (living benefits, critical illness).
Cons:
Requires underwriting (medical exam for most).
Premiums depend on age and health. Cost Comparison: Group vs Individual Life Insurance
Most people need 5–10× their salary in coverage, which work policies rarely provide.
A 32-year-old earns $60,000/year. His employer provides a free work policy worth $60,000 (1× salary). But his family needs at least $500,000 of coverage. He buys an individual term policy to bridge the gap, ensuring his family is fully protected.
Work life insurance is a great perk, but it’s rarely enough. For real financial protection, most people need an individual life insurance policy.
At Connect to Coverage, we help families supplement employer coverage with the right individual plans. Get your personalized quote today.
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