Is individual life insurance more expensive than employer coverage?

The cost comparison between individual and employer-sponsored group life insurance is more nuanced than it first appears. Group coverage often appears "free" or low-cost because employers subsidize a portion of the premium. But true apples-to-apples cost comparison reveals important differences.

Employer-sponsored group life coverage is typically priced on the group's overall health profile—not your individual health. If you're young and healthy, you may actually subsidize older or less healthy colleagues in a group plan, meaning group pricing isn't as favorable as individual preferred pricing for healthy individuals.

For healthy, younger Nevada applicants who qualify for preferred or preferred-plus rates, individual term insurance can be surprisingly competitive with—or even less expensive than—buying supplemental coverage through an employer plan. Additionally, individual coverage is permanent: it stays with you regardless of employment status, whereas group coverage ends with your job.

The total cost equation should also account for the true premium you pay for group coverage (your payroll deduction), the fact that group coverage ends with employment, and the risk that your health may change before you can find individual coverage if you rely solely on group insurance.

Agents in our network can compare your actual employer benefit cost against individual quotes to determine the most economical combination.