Is Your Employer-Provided Life Insurance Coverage Enough?
Employer-provided insurance is certainly a very nice benefit to receive, but it’s important to understand its limitations.
Only A Fraction Of Coverage Compared To The Norm
Compared to the usual 12 – 15% of annual earnings that is usually recommended for life insurance, employer-provided insurance only usually provides 3 – 5%.
According to The Insurance Bulletin, term insurance is a type of insurance that only covers you for a certain amount of time. So, by knowing this, you could go with employer-provided insurance, and then whenever you are ready or are facing unfortunate circumstances, you could opt to go with term insurance.
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.
Do You Have A Family?
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.
How Much Life Insurance Is Actually Needed?
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.
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