New York Child Abuse Identification and Reporting Practice Exam

Why is relying solely on employer group life insurance generally considered inadequate for most individual's needs?

1. It is financially insufficient to cover end of life expenses

2. It provides benefits only to active employees

3. It's expensive compared to individual policies

4. It lacks flexibility in coverage options

The correct answer is: It is financially insufficient to cover end of life expenses

Relying solely on employer group life insurance is generally considered inadequate because it may not provide enough financial coverage to meet the various expenses that arise at the end of life. End-of-life expenses can include funeral costs, outstanding debts, and other financial obligations that may not be fully covered by the benefits offered through a group policy. These policies often have a predetermined coverage amount that might be insufficient for an individual’s specific needs and circumstances, especially if they have dependents or significant financial responsibilities. Furthermore, as responsibilities change over time, individuals may require additional coverage that a basic group policy cannot provide. The other aspects of group life insurance can also be limiting, such as the restriction of benefits to active employees, which may leave individuals without coverage if they experience job loss or career changes. While cost competitiveness and flexibility are important considerations in insurance, the primary concern with group policies is often the adequacy of financial protection they provide in terms of covering meaningful end-of-life expenses.