There are many people out there who assume that just because they get employer-provided life insurance, they are completely safe. However, this could not be further from the truth.
Compared to the usual 12 – 15% of annual earnings that is usually recommended for life insurance, employer-provided insurance only usually provides 3 – 5%.
One of the biggest factors that will affect whether or not employer-provided insurance is enough for you is if you have a family. If you do, then the answer is a resounding no.
Unsurprisingly, it is hard to determine exactly how much life insurance a particular individual needs.There are ways you can estimate how much life insurance you need, but as a good rule of thumb, more is always better.
Even groups that haven’t even had the chance to consider life insurance, such as Millenials or Gen Z’ers, can get a lot of use out of life insurance due to the extremely affordable costs and the astronomical benefits.
With employer-provided insurance, you don’t have to go out of your way to look into buying additional life insurance, which is something many people want to avoid doing if possible.
However, life insurance is not a topic that should be taken lightly, with little to no thought. Sure, looking into getting additional insurance alongside your employer-provided insurance may mean going out of your way and perhaps take a few hours out of your day, but the alternative of not having enough life insurance to cover you and your family is a much worse option.