If you work for one of the many companies who provide life insurance to their employees, you’re lucky. But don’t let this benefit prevent you from considering all of your options—especially when your employer-paid policy isn’t enough. Think of this free or low-cost coverage as a part of the overall package. We’re happy to help you review plans you already have in place and make suggestions that fill in the gaps! Because at Freedom Insurance Agency, we believe in providing a personal approach to comprehensive coverage.
Salary, Supplemental, and Special Needs
At work, how much life insurance you get is often based on your salary. Depending on your employer, it may be equal to your annual salary, double, or even triple that amount! Up to a certain point. Unfortunately, these calculations usually don’t include bonuses, commission, or other incentives that your family may rely upon today.
You might have the option, though, to purchase supplemental life insurance through your company. While not automatically included, these programs typically offer more relaxed underwriting and low rates, since you’re purchasing them as part of a group. Depending on how this supplementary program was established, you may even be able to add life insurance for your spouse and/or children. It’s a great way to obtain a much larger amount of life insurance to suit your special needs.
Although some people believe that having twice their annual salary set aside in benefits will be sufficient, others have 4 to 6 times this amount. Some experts even recommend taking what you make in a year and multiplying that by 10 or 12 in order to adequately provide for your dependents. Of course, we would prefer to have an individual discussion before making any such suggestions. While we don’t want you to be over-insured, households with only one working spouse, a large mortgage, and/or children with special needs will naturally require more coverage.
Job Transitions: Leaving Your Life Insurance Behind
One of the biggest drawbacks of employer-provided life insurance is that it only lasts as long as your time with the company. So, if you’re planning to transition to another job or retire altogether, what happens to your coverage? With fully-paid plans, you can easily assume that the insurance expires when you leave. Supplemental policies that you’ve been paying into may offer other options. But you’ll likely have to renegotiate rates and terms once you’re on your own.
Unless, of course, you already have an individual policy in place. By buying life insurance outside of your workplace, you’re maintaining control over the coverage and the cost. Whether you bundle it with your homeowners’ insurance and/or auto insurance, you can keep the policy no matter where you work! Just don’t wait too long to contact us about additional coverage.
Many individual policies have more underwriting involved, which can become an issue over time. As long as you’re young and healthy, life insurance is easy to obtain and affordable! Once you develop health issues, though, you may struggle to find a policy in your price range.
Let us help you plan for the future with life insurance that covers you completely. Contact Freedom Insurance Agency today to compare your current employer-provided plan with other options. We can even pull free quotes at your convenience! Give yourself the freedom to choose.