life insurance, protection

Job Change, Group Life Insurance and Russian Roulette

In the United States, there is a huge number of households which are unprotected or under protected by Life Insurance. In a recent LIMRA study 7 in 10 households believe would be in serious financial distress if an adult in the household passed away. (1)

37 million households have no life insurance.
Another 33 million households do not have sufficient life insurance to count themselves as protected.

One vehicle that many people rely upon for protection is Group Life Insurance. When offered as a company benefit, it can inexpensively provide protection for many people… but it only does so while the insured works for the company.

Currently, 1 in 5 people are only covered by Group Life Insurance.

The challenge is that recent employment trends show that people are changing jobs more often than in past years. (2)

“Many companies are trying to fill the talent pipeline as baby boomers retire. Accounting, engineering, management consulting and advertising, as well as motor vehicle manufacturing and high-tech electronics manufacturing, will lead the way. But the labor market is strong across the board, and graduates may receive multiple job offers.” (3)

A study by LinkedIn shows that Job-hopping is becoming more common in the workforce. (4)

“Over the last 20 years, the number of company’s people worked for in the five years after they graduated has nearly doubled. People who graduated between 1986 and 1990 averaged more than 1.6 jobs, and people who graduated between 2006 and 2010 averaged nearly 2.85 jobs.”

In 2021 a new trend added to this wave of job changing. “The Great Resignation has U.S. workers quitting their jobs in record numbers—more than 24 million did so from April to September of 2021—and many are staying out of the labor force. The pandemic has taken a toll, with surveys showing an increase in feelings of burnout and a deterioration in mental health in many nations. But the pressure has been building in developed countries for decades. Incomes have stagnated, job security has become precarious, and the costs of housing and education have soared, leaving fewer young people able to build a financially stable life.” (5)

In addition to voluntary job changes, a growing trend among large corporations is to convert employees from W2 full time positions to Contractors. By doing so the corporation can reduce or eliminate the expense of things like, Group Life Insurance.

Both of these trends point to a dangerous growing gap in the protection of families.

Employees that are protected by Group Life Insurance, but end up leaving that position, either voluntarily or otherwise, end up losing that protection. This is a particularly dangerous situation to be in.

Qualifying for life insurance is based a person’s age and their health. As people age, they develop illnesses. You will never be younger or healthier than you are right now.

If you leave or lose your job, and your Group Life Insurance coverage, you may not be able to get replacement coverage.

So, what should you do?

I believe it makes a lot of sense from a risk management standpoint to maintain both group life insurance and your own individual life insurance policy.

By maintaining your own life insurance policy, you are assured of your family’s protection, regardless of your employment situation. There is a great deal of flexibility on how a policy can be designed to suit your situation and goals.

The key is to think about planning for the long term. Not this month or this year, not this job or this career, not this election or this recession… By focusing on the short term, you are playing Russian roulette with the future of your family.

Instead ask, what will protect my family regardless of the circumstances around me?

By doing so you can ensure that regardless of circumstance, regardless of illness, your family and loved ones will be protected.

To learn more about how Life Insurance can be designed to help protect your family reach out to me today at

Retirement Income. Tax Efficient Planning.
Life Insurance. Disability Insurance
Socially Responsible Investing

To learn more contact:
James Cox
Cell: 267 323 6936
PAS 150 South Warner Rd.  Suite 120 King of Prussia, PA 19406

Links to other sites are provided for your convenience in locating related information and services. Guardian, its subsidiaries, agents, and employees expressly disclaim any responsibility for and do not maintain, control, recommend, or endorse third-party sites, organizations, products, or services, and make no representation as to the completeness, suitability, or quality thereof. 

The opinions expressed are not necessarily of Guardian or any of it’s subsidiaries.

Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 150 S. Warner Road, Suite 120, King of Prussia, PA 19406 (610)293-8300.  Securities products and advisory services offered through PAS, member FINRA, SIPC.  PAS is a wholly owned subsidiary of Guardian.

Consult your tax, legal, or accounting professional regarding your individual situation. 

2022-137452 exp 5/24