Is My Work Life Insurance Enough?
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.
To speak to an financial professional about your life insurance needs, complete the form below.