Three Reasons Life Insurance Through Your Employer Isn’t Enough to Keep You Covered

Last Updated: April 6, 2019

If you have a full-time job with an employer that offers a generous benefits package, you’re better off than many other people in the workforce. Surprisingly, though, even when an employer offers life insurance coverage, you and your family might not actually be covered for life.

Often, the life insurance offered by your work isn’t enough to give you and your family the protection and security you deserve. You should definitely take advantage of any life insurance provided by an employer, but should also consider supplementing it with an individual policy that can follow you regardless of your job.

Here are three reasons you may need to look into additional life insurance coverage to supplement what your employer provides.

Quick Article Guide:

1. Less Freedom To Select The Coverage That Works for You
2. Too Little Coverage Now
3. No Coverage At All Later On
4. What is Your Ideal Amount of Coverage

1. Less Freedom to Select the Coverage that Works for You

While it’s terrific if your employer does offer life insurance coverage, you’re likely limited to choosing from a small selection of policy options. The coverage that works for your co-worker may not be the best option for you and your family. In relying solely on the coverage your employer is willing to provide, you could be limiting your protection—both now and in the future.

By working with an independently owned agency like Term Life Advice, you’ll have access to more than 60 top-rated insurance companies. Every life insurance company has their own underwriting guidelines and coverage options. Working with an independent agency you’ll save money, and allow you to customize your life insurance policy to fit your specific needs.

2. Too Little Coverage Now

Typically, the life insurance provided by employers is minimal. The coverage is usually just enough to replace your income for a set number of months, and does not take other responsibilities, bills, or payments into account. For example, a $50,000 policy will not help your family pay for a mortgage or college tuition.

According to the Life Insurance and Market Research Association (LIMRA), nearly 40 percent of employees believe they need more coverage than what their work provides. While you can buy an additional term life policy through your employer, the supplemental coverage isn’t always the cheapest or most economical option.

3. No Coverage At All Later On

Of course, if you’re solely depending on the life insurance provided by your employer, your coverage is only good as long as you keep that job. You’ll have more security if you purchase life insurance on your own—outside of that provided by an employer.

Waiting to purchase life insurance later in life—because you’ve left or lost your job—could put you at risk of paying for higher premiums or having difficulty qualifying. Purchasing term life insurance in your 50s and 60s is far more expensive than getting it earlier, in your 30s or 40s.

What Is Your Ideal Amount of Coverage?

It’s always better to be safe than sorry. There are several factors that should play into your decision of the type of policy you need. The more coverage you have, the better you can provide for your family. For instance, if your salary were $50,000, a $100,000 policy would only provide for your family for two years. While a policy of $1 million may seem exorbitant initially, it would provide for your family and responsibilities (like paying off a debt or mortgage) for a far more reasonable amount of time.

Term Life Advice is an owner-operated agency that can help you find the best policy to supplement your employer-paid life insurance. We are experts in the underwriting process and can help you find the best policy and coverage for you, your family, and your goals. Call us toll-free at: 855-902-6494, or request an instant online quote below to compare rates from dozens of top-rated life insurance companies in less than a minute.

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