A lot of US employers do same. But it is not a good idea to put all your eggs in one basket.
Any case similar to OP will become problematic. When you get terminally ill you will eventually lose your job. Thanks to COBRA you can keep health insurance, but not the life, disability and long-term care insurance plans. And getting new term life policy at this stage is not really an option.
Re:What Dreams May Come
by tungwaiyip on Thursday March 13, 2014 @01:14PM
(#7393154)
I was wonder about this. Does employer life insurance do anything to terminal illness? I pay extra to supplement my term life. But if I get too sick to work and lost my job, what good is the employer life insurance?
I would check with employer and insurance policy. But I believe legally they don't have to keep this policy active after you quit.
Re:What Dreams May Come
by alistairjcbrown on Thursday March 13, 2014 @06:00AM
(#7390856)
Same: UK too and employer provides life insurance.
But when I bought a house, I was advised to get insurance cover specifically for the amount of debt remaining on the house; the policy lasts the length of the mortgage and pays out whatever is debt is outstanding.
We also both have additional personal life cover for at least 6x annual salary.
This doesn't seem excessive cover to me - maybe because we are in our 40s with kids (and knowing people who have died and having close relatives who are terminally ill) makes you worry about these things more - I certainly didn't in my 20s.