You’re one click away from better coverage. Start your quote with Blue Marsh today!
If your employer provides life insurance as part of your benefits package, that’s a great perk. But there’s an important question many people never stop to ask:
Is the life insurance I have through work actually enough to protect my family?
For many people, the answer is no.
Employer-provided life insurance can be a helpful starting point, but it may leave a significant gap between the coverage you have and the amount your family would actually need if something happened to you.
How Does Employer-Provided Life Insurance Work?
Many employers offer group life insurance as an employee benefit. Depending on your employer, they may provide a set amount of coverage or base your benefit on your salary — for example, one or two times your annual income.
That can sound like a substantial amount of money. But consider everything your income helps pay for over the course of many years.
Your family may need to cover:
- A mortgage or rent
- Everyday household expenses
- Car payments and other debts
- Childcare costs
- College expenses
- Medical bills and final expenses
- Years of lost income
If your family relies on your paycheck, one or two years of your salary may not go nearly as far as you think.
Your Life Insurance Through Work May Not Follow You
There’s another potential problem with relying solely on employer-provided life insurance: your coverage is connected to your job.
If you leave your employer, change careers, are laid off or retire, you could lose that coverage. Some plans may allow you to continue or convert your coverage, but the options and costs can vary.
Having an individual life insurance policy means your protection isn’t dependent on where you work.
What If You Can Buy Extra Life Insurance Through Work?
Some employers allow employees to purchase additional group life insurance.
That can certainly help increase your protection, but it’s still worth comparing your options.
An individual life insurance policy may give you more control over your coverage, including how much protection you purchase, how long you keep it and the type of policy you choose. Depending on your age and health, purchasing coverage outside of your employer may also be more affordable than you expect.
How Much Life Insurance Do You Actually Need?
There isn’t one number that’s right for everyone.
A single person with few financial obligations may have very different needs than someone with a spouse, three children, a mortgage and a household that depends heavily on their income.
Instead of simply asking, “How much life insurance do I have?” we encourage you to ask:
“If I weren’t here tomorrow, how much would my family need to maintain the life we’ve built?”
That changes the conversation.
Your life insurance needs should take into account your income, debts, mortgage, dependents, future goals and the financial resources your family already has available.
Employer Life Insurance + Your Own Policy
You don’t necessarily have to choose one or the other.
Your employer-provided coverage can be one layer of your financial protection, while an individual life insurance policy can help fill the gaps.
Think of the coverage through work as a benefit — not necessarily your entire life insurance plan.
Let Blue Marsh Help You Find the Gap
If you haven’t looked at your life insurance recently, you don’t have to figure out the numbers on your own.
At Blue Marsh Insurance, we can help you review the coverage you already have, consider what your family would actually need and explore life insurance options that fit your goals and budget.
You may discover you’re adequately protected — or you may find a gap you didn’t realize was there.
Either way, it’s worth knowing.
Ready to see how affordable life insurance could be?
Request your complimentary life insurance proposal here!
A little more about Blue Marsh Insurance…
When he founded Blue Marsh, Tom Davenport wanted to create a different kind of insurance company. One that’s built on personal relationships and a local presence. One where you, the customer, feel more like a friend.
As an independent insurance agency, Blue Marsh Insurance represents a carefully selected group of financially strong, reputable insurance companies. Therefore, we are able to offer you the best coverage at the most competitive price.
If you’re interested in starting a quote online or having us take a look at your current policies, click here!