Here are some things you might not know about your employer-provided life insurance.
Today, more Americans than ever have life insurance coverage through their jobs. If you have employer-provided life insurance, there’s a bit more to it than you might think. Here are some of the things you might not know about your coverage.
- It Might Not Be Enough
Most employer-provided life insurance coverage is one to three times your annual salary. While this might seem like a ton of money, in actuality, this is probably not enough to cover your family’s financial needs for an extended period of time. It’s also important to remember that, if you passed, your family would also lose things like your health insurance coverage. It’s unlikely that your employer-provided life insurance will include enough coverage to make up for these losses. Oftentimes, you will have to get additional life insurance to get all the coverage you need.
- It’s a Benefit, Not a Guarantee
While most Americans believe that their employers should offer life insurance coverage, this is not a benefit that employers are required to offer. Even if your employer is currently offering life insurance coverage, it’s important to understand that they have no obligation to offer this same benefit next year or the year after. If your company needs to cut costs, then your life insurance coverage might disappear. That’s why it’s important to have a back-up plan in place.
- It’s Not Portable
Typically, employer-provided life insurance is not portable, meaning that you cannot take this coverage with you if you leave your job. While some policies will offer you the chance to convert it into a personal policy, this is often a very expensive option. This is why it’s important to have your own personal life insurance policy as well.
Ultimately, employer-provided insurance is a great perk, however it’s simply not enough to provide all the coverage you need. You will most likely need a personal life insurance policy to supplement your employer-provided policy. For assistance with finding the right life insurance to meet your needs, contact the professionals at John Scott Insurance. Our team is ready to get you the coverage you need today.