3 Reasons You Need More Than Just Your Employer-offered Life Insurance

Many employers provide employees with a life insurance policy as a component of their comprehensive benefits package. Although these policies can be a good starting point, they may not meet your family’s needs. 

Why You Need More 
In general, employer-offered life insurance plans have a limit on how much money you can take out on yourself. And, they may or may not permit your spouse, if applicable, to take out a policy as well. In many cases, your employer-offered life insurance policy won’t be enough to cover your family’s needs in the event of your death. Here are a few examples of why you may wish to extend coverage. 

#1: Your Policy Is for Funeral Expenses Only 
Some employer-provided policies focus on just providing for the needs of final expenses. This may include a smaller death benefit to pay for the cost of burial and funerals. This is an important policy. It does meet a valuable need. But, it may not offer enough protection to you. You may want coverage for additional needs. If your policy is smaller, this can limit what your family can do to meet needs later. 

#2: You Want to Cover Long Term Expenses 
Some individuals want to provide for their family’s needs over a longer period of time. For example, as the breadwinner, you may recognize the importance of having the policy to meet your family’s needs down the road. If the policy you have only covered a fraction of this, adding another layer of coverage can help do this. Buy an additional policy to cover any gap in the amount of money you wish to leave behind for your loved ones. 

#3: You Have Specific Beneficiary Goals 
Life insurance can provide for a variety of needs. If you wish to leave behind funds to a charity, to pay for your loved one’s college expenses, or to support the needs of a disabled adult, you may want a more flexible or higher-valued policy. You can get this in addition to coverage available to your family through your employer. 

Take note of the value of whole-life insurance. It may help to provide a source of retirement funding to you during your lifetime. If your employer does not offer the right type of coverage, consider more. Adding more can give you peace of mind and help meet your loved one’s needs.