Three Reasons Why Relying Solely on Life Insurance from Your Employer Can Be a Bad Idea

While it may be convenient to do so, relying solely on life insurance from your employer can be a bad idea.


Many companies provide a certain amount of life insurance to their employees as a benefit.This can be great in certain situations. However, it can also cause problems when thinking that the life insurance they have through work is all that is needed. Sometimes it may be, but more often than not the coverage may not provide their family with the right amount of protection that is needed.

1. It isn’t really your Insurance

With employee benefits, you are at the mercy of the company you work for — you can work only with the options the company gives you and your ability to keep the policy is dependent on two things:

  1. Your employer’s willingness to keep providing the benefit, and
  2. Your continued employment there.

If either of those things change, you could find yourself without coverage. Having your own policy ensures you’ll have coverage as long as you need it and won’t experience any breaks in coverage based on your employment situation.

2. It’s most likely not enough coverage

How much money would it take for your family to cover all of its expenses for multiple years if they no longer had your income coming in? If your spouse is a stay-at-home parent, will they have to start working? Should they have to? Also, who will now take care of all the duties they perform now? Will they do it for free?

Many employer life insurance options usually restrict the amount you can have. The life insurance included with your employee benefits is usually only one or two times your annual salary. Most financial experts recommend you have life insurance in the amount of five to seven times your annual salary.

3. It can cost you more money

Employer-provided life insurance can be appealing because often times it’s cheaper than the alternatives. However, that’s not always the case, especially if you’re in great health, but it’s often true.

While you may have an affordable life insurance plan with your employer this year, the rate could go up or the plan could even be canceled next year! So while it might save you money at first, it can end up costing you more down the line. A great reason to purchase your own life insurance, you can choose the plan and guarantees that best fit you.
To see if you have enough coverage locate your Georgia Farm Bureau Agent today by clicking here.

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