If you receive group life insurance through your employer, you may believe you’re adequately covered and may not continue researching the matter. Depending on your situation, this can be a serious mistake. First, figure out if you need more than just a group life policy provided by your employer. By asking yourself a few questions, you can better prepare for life's surprises.

How to Determine if Employer Sponsored Life Insurance Is Enough

Do You Have Dependents Who Rely on Your Income?

Typically, benefit amounts of group life policies equal one or two times your annual salary. This may seem like a large lump sum, but if you have dependents who rely on your income for support, this amount won't last long. If you have young children, you might want to purchase additional coverage that provides for them until they reach age 18.

Do You Have Outstanding Debt?

Another thing to consider is if you have large amounts of outstanding debt you want to pay off. For instance, even if your spouse works, they may not be able to afford the current mortgage payment on your house. If your goal is to eliminate this debt, your group life policy may not be anywhere near enough to help you achieve it. Additional life insurance coverage will be required.

Do You Have Financial Goals for Your Family?

Aside from paying off debt, do you have other financial goals for your family? Do you want to provide for your spouse's comfortable retirement? Do you want to pay for your children's college tuition? These goals may require a significantly larger death benefit than what your group life policy provides.

Do You Simply Need to Pay for Funeral Expenses?

Are you single and largely debt free? Are your children and spouse able to support themselves financially? If all you need is enough money to pay for your funeral expenses, a group life insurance policy may be enough to give you what you want.

Once you ask yourself the right questions, you’re on your way to selecting the perfect insurance to meet your needs. At Steven Hall – Farmers Insurance in Mountain Grove, MO, we’re the most trusted and experienced seller of life, auto, and homeowners insurance in the area. Contact us if you feel you might need additional life insurance coverage to protect your family. Visit our website to request a quote, or call (417) 926-7900 for directions and hours of operation.