Myths About Life Insurance – Myth #10: “Group Insurance Plans Are More Than Enough.”

Financial Horizons: Insights for Building Wealth and Securing Your Legacy

By Dr. Jose G. Cardenas, Chief Tax Strategist at The C & R Group, LLC

Let’s set the record straight — depending solely on your employer’s group life insurance plan is one of the biggest financial missteps many professionals make. It’s convenient, yes. It’s cheap, sure. But is it enough to protect your family, replace your income, and secure your legacy? Not even close.

This myth has cost countless families financial stability after the loss of a loved one. Group life insurance is a start — but it’s not a solution.

1. Group Coverage Is Temporary — It Ends When You Leave the Job
Your employer may be generous enough to offer life insurance coverage while you’re employed, but here’s the harsh truth: that coverage walks out the door with you.

When you retire, switch jobs, or get laid off, that protection disappears — often at the exact stage in life when you need it most. Replacing coverage at that point can be difficult or expensive, especially as you age or develop health conditions.Your life insurance should move with you, not depend on a payroll system.

2. Group Policies Rarely Offer Enough Coverage
Most group life insurance plans offer a benefit of one to two times your annual salary. That might sound helpful — until you calculate the real costs your loved ones would face.

Would that payout cover:

• Your mortgage balance?
• College tuition for your kids?
• The loss of your income for 10+ years?
• Final expenses and ongoing family support?

Probably not. A general rule of thumb is that your life insurance coverage should equal six to ten times your annual salary. For most professionals, group insurance doesn’t even come close.

3. Group Plans Don’t Build Cash Value or Tax-Free Wealth
Employer-provided coverage is term insurance only — it expires and offers no long-term wealth benefits.

On the other hand, Indexed Universal Life (IUL) and similar private policies not only provide lifetime protection but also build tax-free cash value you can access in retirement or during financial hardship. This cash can be used to:

• Supplement retirement income
• Fund a business venture
• Pay for college
• Cover medical emergencies

At The C & R Group, LLC, we integrate IUL strategies into personalized financial plans to help clients use life insurance as a tool for tax-free growth, not just protection.

4. Group Insurance Is a Good Start — But Not the Finish Line
Think of your employer plan as the first layer of protection — not the foundation. True financial security comes from owning a personal life insurance policy that you control, one that stays with you regardless of where your career takes you.

Your family’s future shouldn’t depend on HR policy changes. It should depend on your proactive planning.

The Bottom Line
Group life insurance is better than nothing — but it’s far from enough. Real financial protection comes from taking ownership of your coverage and designing a plan that grows with your life.

Don’t let a job title determine your family’s future. Take control today — and make your insurance work for you, not your employer.

👉 Read more at: www.thecrgroupllc.com/blog
📅 Book your personal strategy session: Book a consultation with Dr. Cardenas

About the Author
Dr. Jose G. Cardenas is a retired U.S. Army Finance Officer and the Chief Tax Strategist at The C & R Group, LLC. With a Doctorate in Business Administration and over 20 years of experience in financial strategy, tax planning, and life insurance, Dr. Cardenas helps individuals and business owners protect their wealth and build a legacy. Learn more at www.thecrgroupllc.com.

📌 Disclosure
This article is for educational and informational purposes only and is not intended to serve as personalized legal or investment advice. Dr. Jose G. Cardenas, DBA, provides tax advisory services through The C & R Group, LLC. Insurance strategies, including Indexed Universal Life (IUL) and annuity products, may be offered through his role as a licensed financial professional affiliated with Experior Financial Group.

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