The Great Resignation Causes More Individuals to Purchase Life Insurance Outside of Their Employer: Find Out Why

Life insurance is something that a lot people think about when they either retire, or have some other life event that makes them stop and think about their mortality. The surge of the Great Resignation is one event that has caused a lot of employees to consider purchasing life insurance outside of their employer because they would no longer be covered when they resign.

If your employment status is up in the air and you don’t have life insurance when something happens to you, your family will be left with a huge financial burden. Purchasing life insurance outside of your employer gives you peace of mind knowing that your family will be taken care of no matter where you decide to plant roots in your career journey.

Continue reading to find out how the Great Resignation has effected employee decisions about life insurance.

What Is the Great Resignation?

The Great Resignation is a major economic shift reshaping the 21^st-century workforce. One of the biggest movements in a sea of similar ones – think: quiet quitting, remote working – the Great Resignation embodies the trend of resigning from jobs due to unfair or less than desirable working conditions.

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Some examples of justifications for the Great Resignation include low pay, especially in areas with high costs of living, unsafe working conditions, poor benefit packages, demands that exceed initially outlined job duties, problems with seniority or promotions, and unjust firings and layoffs.

Why Is the Great Resignation Happening?

Naturally, the question of why arises when considering the Great Resignation, particularly why now. Many attribute the shift to the pandemic acting as a catalyst.

Unfortunately, there is no singular answer. COVID-19 completely shifted the world, including the local economy and workplaces, exposing many problems that were previously being ignored.

Perhaps emboldened by the mass uncertainty or the potential of “better,” workers spanning industries slowly came to realize that their unsavory work conditions weren’t a requirement.

Instead, more and more were unhappy with their current working conditions and ditched their workplace altogether or in regard to benefit coverage. So, what does that mean for the life insurance industry? Another major shift.

How Benefits Are Being Impacted by the Great Resignation

When the job market and economy are so uncertain, it leaves many people, especially those partaking in the Great Resignation, to turn to other places for things like benefits.

Employees no longer need to put up with finely outlined details of how much coverage is possible, when it’s possible, and who is eligible. The finely constrained benefit options provided by many companies act as the complete antithesis of the Great Resignation movement.

A growing number of people have realized that they can purchase benefits through online marketplaces rather than at the mercy of an employer who could take away those benefits at any time.

What This Means for the Life Insurance Industry

Despite many losing employer-sponsored benefits in the midst of the Great Resignation, the demand for them, especially life insurance, never left. If anything, the pandemic exposed just how important it was to be prepared for the worst but the inevitable.

While those who have participated in the Great Resignation may only have the option to purchase life insurance through marketplace insurance providers, a percentage of those still employed are turning to external insurance providers as well.

Whether it be to double up and provide supplemental coverage or outright deny coverage at work in favor of something more adaptable elsewhere, the reality is the Great Resignation has highlighted the importance of choice. That choice-making also extends to protecting themselves in times of uncertainty, inflation, and in the post-pandemic world.

By looking for coverage outside of an employer, the working class is able to have locked-in benefits that are not subject to change, which is viewed as a commodity these days.

The Bottom Line

With the Great Resignation movement and the uncertainty that caused it, the masses have moved to take their life into their own hands. There is no one-size-fits-all answer as to why more people are purchasing private life insurance outside of an employer, but there is a trend – people want the security of being in charge.