Many employers offer workers a life insurance policy as part of their benefits package. The amount is often a function of the employee’s salary — typically one to three times the annual amount. Because of this, many workers think they are properly covered when, in fact, there are a few holes. Below is an explanation of why you may need supplemental life insurance coverage even if you have a work-sponsored policy.
Why Work-Provided Life Insurance May Not Be Enough
You Could Lose the Job
As stable as you might think your position is at a company, anything can happen. Business downturns and corporate restructuring plans result in job losses every day throughout the U.S., and once the job is gone, so is the life insurance coverage. You could easily find yourself facing a gap in protection, putting your family at risk if something were to happen to you. To prevent this coverage gap, consider purchasing a supplemental life insurance policy through a reliable provider. That way, you and your family are secure no matter what happens at your workplace.
The Benefit Might Be Insufficient
Even if you’re covered, the death benefit provided by your work-sponsored insurance policy may not be enough to provide your family with the security they need in the event of your passing. A year or two of your salary will provide them with basic necessities for a while, but it’s not sustainable.
If your children are small and your spouse must return to work, consider the cost of childcare in addition to your current fixed expenses. Also, consider the costs of your funeral arrangements Moreover, a work-sponsored policy probably won't pay off the mortgage — and other debts — or provide for your kids’ college expenses. If your financial goals include providing for your family's long-term future expenses, you may need to consider an additional life insurance plan through a private insurer.
For affordable, high-quality life insurance, contact Dewey Beckner with Allstate Insurance Companies in High Point, NC. Their team has been serving Guilford County for more than 20 years, offering invaluable guidance on coverage and deductibles. They also specialize in auto, boat, motorcycle, and homeowners insurance. Call them at (336) 884-5636 for help designing a policy or visit their website to request a life insurance quote today.