Is My Life Insurance Through Work Enough Coverage?
Here’s how to tell if life insurance through work is right for you.
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If your employer provides group coverage that’s low-cost or free, snatch it up, but make sure you know what you’re getting. Ask yourself these questions to better evaluate your options with life insurance through work:
Does it cover your needs?
The amount of life insurance you get may be based on what you make, or it may be a flat amount. In either case, you may need more than what’s offered, especially if you have family members who depend on your income. With too little coverage, your family might not receive the financial protection you want them to have. Use our life insurance calculator to get a general idea of how much you need.
Is it your best value?
You may be able to purchase additional life insurance through work, but it’s likely the convenience will be offset by high rates. Make sure you consider all your options, comparing what your employer offers to what life insurance you could get on your own.
Will it go with you?
With many group policies, your company’s life insurance ends when you stop working for your employer. With others, your premiums could go way up.
Are there other options?
Consider an individual life insurance policy in addition to employer-provided coverage. You’ll be able to buy as much as you need at a rate that’s based on your situation, and it can last as long as you need it.