Life insurance is one of the most fundamental purchases that you’ll ever make for your family. It’s one of the only ways that you can guarantee that your family will have the money that they need, regardless of what they need.
One way that a lot of people are getting life insurance is through their employer. More and more corporations are starting to offer group insurance to their employees as an incentive. These plans are a great way to get additional coverage.
Is Employer Sponsored Life Insurance Enough?
The problem with life insurance through an employer is that these plans tend to be very small. With most companies, they will only offer a year or two of your annual salary. These plans are usually free, which is a nice employee benefit, but there are several factors that you should consider.
First of all, it’s difficult to say if your employer sponsored plan is going to be sufficient enough. Every family is different, and that means that each person has different life insurance needs. Additionally, each corporation offers a different type of life insurance or size of policy.
Will that Plan Pay Off Your Debts?
The main goal of your life insurance plan is to pay off all of your debts and other final expenses. If something tragic were to happen to you, all of your debts could go to your family and they may not have the money they would need to pay off those debts. That’s where your insurance protection comes in.
More than likely, your employer plan is not going to be nearly large enough to pay off your debts and other final expenses. Not having enough money to pay off those bills is one of the worst things that you can do for your family.
Before you purchase any insurance coverage, it’s vital that you add up all your debts and other final expenses. This is going to be everything from your mortgage loan to your credit card bills. Make sure that your life insurance plan is large enough to pay all of those off.
How Long Will You Need Life Insurance?
Another reason that your employer life insurance coverage might not be sufficient enough is that of the length of your insurance needs. A lot of policyholders assume that once they retire, they no longer need life insurance coverage, but in most cases, that isn’t true. Regardless of your age, it’s important that you have the insurance protection that your family will need.
As long as you have family members that rely on your income, then you need life insurance coverage. If your children have moved out of your home and they earn their paycheck, then you may no longer need life insurance protection.
Getting an Additional Coverage
It’s important that you get the best insurance coverage for your family. Employer sponsored life insurance plans are an excellent way to get additional life insurance, but it shouldn’t be your main source of income. Luckily, there are plenty of options for affordable life insurance coverage.
If you want to get a primary life insurance plan to give your family the coverage that they need, it’s important that you compare dozens and dozens of plans before you decide which one is best for you. Every insurance company is different, and all of them are going to view your application differently. Finding the perfect company could be the difference in getting an affordable insurance policy or buying a plan that breaks your bank every month.
If you want to get the most affordable insurance plan possible, the easiest way to do that is to work with an independent insurance agent. Unlike traditional agents, independent brokers work with lots of highly rated companies across the nation. These brokers can bring all of the best insurance plans directly to you.
Not only can they help you find the lowest rates, but they can also help you determine how much coverage you will need. These insurance agents will walk you through the calculations process and ensure that you have enough protection.