Many employers offer life insurance as part of their benefits package. So, perhaps, you may think, your employer life insurance is all you need. This is a myth and there are reasons why you should want to secure a separate life insurance policy on your own.
Often life insurance from an employer is not enough to meet your protection needs. Typically, the employer sponsored life insurance benefit is a term life policy which offers a multiple of your salary with a fairly low cap at the top policy value. And, often, it's not portable, so if you leave your job you may be without insurance.
Those who are married, own a home or business and/or have children and only have an employer sponsored life insurance plan run the risk of not having enough of a death benefit to support the living spouse or family through the transition.
Additionally, while a non-working spouse may not have an income and therefore you might think there is not a need to insure him or her, non-working spouses provide services that have a replacement monetary value to them.
Lastly, even polices through work that are paid by the company can cost you money. The IRS requires that premiums to provide more than $50 thousand of coverage are to be counted as income for the employee and taxed as "imputed income."
Want to see a rough estimate of your life insurance potential? Go to this calculator to see how much life insurance you might need.
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