What to Take Away From Sears Canceling Thousands of Life Insurance Plans
April 30, 2019 by Peter Colis
Sears recently announced some unsettling news for its retirees: the retail company is slashing its life insurance benefits for a number of its more than 90,000 retired employees.
The notice allegedly gives retirees the option to convert all or a portion of their group coverage into an individual whole life policy and cover the costs of premiums. Alternatively, affected retirees could have to purchase their own individual policies, in which case many would be denied due to their age and pre-existing conditions.
This is particularly unfortunate because purchasing life insurance for the first time as a senior can be prohibitively expensive, and depending on existing health conditions, it could be nearly impossible. In the wake of the Sears news, consumers are left with one important takeaway: Employer-provided life insurance shouldn’t be solely relied upon for long-term coverage.
My company helps people get individual life insurance online. Here are some of my arguments about why I believe relying solely on group life insurance is a mistake.