A Valuable Benefit, But Maybe Not a Complete Plan
Many employees receive life insurance through work and assume they are fully protected. It is a valuable benefit, but one important question remains: if something happened to you tomorrow, would that coverage be enough to support your family? For many households, the answer is no.
What Is Employer Life Insurance?
Employer life insurance is group coverage offered as part of a benefits package. Many companies provide coverage equal to one times annual salary, two times annual salary, or a flat amount such as $50,000. Some employers also allow employees to purchase supplemental coverage.
Why Employer Coverage May Fall Short
Coverage may be too low, may end if you change jobs, may offer limited customization, and supplemental coverage can still be insufficient. Some supplemental plans may also become more expensive as you age.
A Real-Life Example
Imagine someone earning $100,000 with employer life insurance equal to one times salary. If the family also has a $350,000 mortgage, a $100,000 college funding goal, and $25,000 of existing debt, employer coverage alone would likely fall short before even considering lost income.
Benefits of Having Your Own Policy
An individual life insurance policy can offer coverage you control, portability if you change jobs, policy options tailored to your needs, and greater long-term stability. The right approach depends on your family, health, income, obligations, and goals.
Complimentary Coverage Review
TrueShield Partners helps families and business owners evaluate current coverage and build a strategy designed around their goals. This article is educational only and should not be construed as legal, tax, or financial advice. Insurance products are subject to underwriting, carrier approval, and policy terms.
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