Myth 2: My Company Covers Me, So I Don’t Need Another Policy

Fact-2.

Your employer covers you only till you are employed with the company. The policy gets terminated once you leave or retire. If the organization has financial upheavals, they may even cancel the policy or reduce the benefits. In which case, you will be stranded when you need insurance cover the most. 

Employee insurance may be sufficient when you are young, healthy, and without responsibilities. 

However, it won’t be enough to cover your future family’s needs like children’s education, marriage, medical emergencies of aging parents, the rising cost of living, and so on. Secondly, the cover may only include a death benefit. This means you are on your own when you retire in case you do not have a financial plan in place to take care of your expenses post retirement.

It is advisable to supplement your employer-provided cover with another insurance policy that is customized to your future needs. Take a policy that can support you financially all through your living years as well as keep your loved ones financially secure in case something was to happen to you.