Is employer group life insurance cheaper than individual coverage in Nevada?

Employer group life insurance appears inexpensive—or free—because employers often pay all or most of the premium. However, comparing true costs requires considering what you actually receive relative to what you need, and how portable the coverage is.

Group policies typically cover 1-2x annual salary. For a Nevada professional earning $100,000, this means $100,000-$200,000 in coverage—far below the 10-12x income ($1-1.2 million) typically recommended. The group premium is low because coverage amounts are small and risk is spread across many employees.

Individual term policies often cost surprisingly little relative to the much higher coverage amounts they provide. A $1 million 20-year term policy for a healthy 40-year-old Nevada non-smoker might cost $80-120/month—comparable to or less than what supplemental group coverage for that same amount would cost, and with much better portability.

Group coverage disappears when you leave the employer. Conversion rights exist but converted coverage is typically very expensive. Individual policies remain in force regardless of employment changes—a significant advantage in Nevada's mobile workforce. For the self-employed (a large Nevada demographic), group coverage is not available at all.

Most Nevada professionals benefit from using employer group coverage as a base layer while supplementing with individual term or permanent policies for comprehensive protection.