The Insider’s Guide to Life Insurance
Should You Get Life Insurance Through Work?
One of the biggest misconceptions about life insurance is that if you have coverage through work, you’re set.
Often times, that’s not the case if you have people who rely on you financially.
Most employer-provided policies only cover a small amount of lost income in the event of your death—often equal to one or two years’ salary with an option to purchase more. As a rule of thumb, you should maintain a policy that is at least five to 10 times your annual income. That’s why relying on an employer-provided policy alone can leave your loved ones financially at risk.
Additionally, employer-provided policies are usually job dependent, which means that if you leave your job, coverage will lapse. Then, if you go to buy an individual policy, you’ll likely be a bit older and a little less healthy. Remember: life insurance is more affordable the younger and healthier you are.
It’s usually more advantageous to purchase an individual policy when you’re young (but only when you really need it).