I'm 22 years old, just started a job, and in good health. Should I buy group life insurance?

Question

My company is offering $0.016 per $1000 of coverage.

Answer 1

The thing about life insurance is you won't be around to benefit from the proceeds when it's time to make a claim.  The other thing is you usually don't know when you'll need it until it's too late.

Are you single?  No kids?  Skip the insurance unless you feel charitable and want to name a charity as the beneficiary.  If your income helps support someone else like a spouse, kids, and so on, that's what life insurance is for.

Group life insurance can lend a false sense of security because the coverage ends when you terminate your employment with the company.   Private term life insurance is guaranteed coverage (as long as you pay the premiums, of course) for a certain term.  With private insurance, insurers will generally refuse to cover you if you have certain pre-existing life-threatening conditions.  So if you go to the doctor tomorrow and discover a brain tumor, you can forget about ever being able to buy a new private life insurance policy, so it may be important to you to have that policy in place sooner than later.

Due to this consideration, I'd personally opt out of the group insurance and look into a 20-year term policy through a reputable company.  At your age it will still be dirt cheap and it gives you some assurances down the road when you do get some dependents despite any health issues that may crop up between now and then.

Answer 2

No.  Employer group coverage terminates when you leave the company.  Buy a level term life policy on your own - 20 or 30 year term.  At your age, the premium will be low and you have guaranteed coverage no matter where you work.