Why Life Insurance Through Your Employer is No Longer Enough

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(Newswire.net — October 11, 2019) — Life insurance is one of those things that experts recommend every person look into. While it’s never a fun thing to think about, the fact is that everyone dies eventually and you want to be sure your surviving family is protected and cared for financially. 

Even knowing this, and understanding how important life insurance is, a study conducted just last year shows that more than 40% of Americans don’t have any type of life insurance whatsoever. The study got more interesting, revealing that 84% of Americans agree it is needed in life, however not everyone is following through and getting it.

Then there is the group that believes they are fine because they have life insurance through their employer. While this may seem okay on the surface, there are plenty of reasons why life insurance through your employer is no longer good enough, and why you should still be looking at obtaining your own private policy.

The Coverage Simply Isn’t Enough

One of the main reasons why employer-based life insurance coverage won’t cut it is because the coverage itself isn’t enough. It is recommended that when you get life insurance you look for coverage that is 10 to 12 times the amount of your annual salary. There’s a good chance your employer offers nowhere near that, coming in more at one to two times your salary.

The positive in this situation is that at least you have some coverage, which means you can go and purchase supplemental life insurance that makes up the difference rather than starting from scratch.

The Life Insurance is Tied to Your Job

Then there is the fact that when your life insurance is provided through your employer, it is tied to your job. Should you quit, leave jobs, or be let go, that life insurance doesn’t follow you – it will end immediately. You’ll suddenly find yourself without any life insurance at all, and there is no guarantee your next employer will offer it.

It’s Not Always the Best Deal

If you are paying into an employee benefits program that includes life insurance, you may want to look at whether or not it ends up being a good deal. Sometimes you’ll get a better rate on your own, and more coverage. 

So, how do you know what kind of rate you could get on your own? The Insurance Geek website is a great comparison tool for anyone looking for current, simple, and quick insurance quotes. Simply type in the coverage amount you’re after and you’ll be given comparison rates to check out.

What About Your Dependents and Spouse?

It’s also important to look into whether your employee offered life insurance covers your dependents and spouse. Again, this is something you could add if you were seeking out private life insurance on your own.

Stay Informed Regarding Your Options

At the end of the day, it’s really about staying informed on your options and being aware of exactly the coverage you have, the rate you’re paying, and how big the gap is between what you have and what’s needed.