Life insurance policies are a common employer-provided benefit, providing beneficiaries with a modest amount of coverage at little or no cost. These policies usually equal one year's salary and can be extremely helpful, but it's important to carefully evaluate your financial situation to determine how much coverage your family will actually need if you unexpectedly pass away. In many cases, you might find that life insurance obtained through your employer is not enough to meet their needs.
Determining How Much Life Insurance You Need
While single individuals or those without significant financial commitments may not need more life insurance than their employers provide, most others must factor in the long-term needs of their loved ones. For instance, those who support a disabled relative, have large mortgage debts, or have non-working spouses will need a life insurance policy with enough coverage to provide for their long-term financial well-being.
You may want to leave enough to pay off the mortgage, or to replace your income until your children graduate from college. You may even decide to carry enough coverage so your survivors can invest it and live off of the interest, which is why many life insurance experts recommend policies worth $1 million or more, depending on your income. An online life insurance calculator can help determine the exact amount of coverage you need.
Purchasing Additional Coverage
Fortunately, purchasing additional life insurance coverage does not invalidate an employer-provided policy, although you may be able to save money by opting out and purchasing an individual plan from a respected carrier. Speak to your insurance agent about your needs and which type of policy is best suited for your situation.
Patrick Brent Roark, Nationwide Insurance Agent, is a highly skilled, experienced professional with years of experience helping Grayson, KY, residents protect the things that matter most. For fast, no-obligation life insurance quotes, visit his website or call (606) 474-7818 today, and follow their Facebook for more tips and advice.