Many companies offer life insurance policies to their employees. While employer-provided coverage is often the first step in creating a balanced financial plan for yourself, it isn't always enough to protect your loved ones. As such, relying on this coverage alone can leave you vulnerable. Learn about employer-provided plans and what you can do to supplement your coverage with this helpful guide.

Why Your Company Life Insurance Isn't Enough

1. They May Not Offer Enough Coverage

While basic employer-provided life insurance policies are either relatively low-cost or free, your policy's face value might not be high enough to cover expenses in the event of your passing.

If you're the primary earner in your family, your life insurance plan should be valued at five to 10 times your annual salary to ensure your family's needs are met. The typical employer-paid policy is valued between $25,000 to $50,000. While this may be sufficient for individuals, it isn't enough for those with non-working spouses, sizable mortgages, or large families. 

2. You'll Lose Coverage If Your Job Changes

As with employer-provided health coverage, your company life insurance policy is only valid as long as you continue to work for them. If you change jobs, switch from full time to part-time status, or if your employer goes out of business, you typically won't be able to keep your existing policy, leading to potentially risky gaps in coverage.

While some policies may allow you to convert a group plan to an individual one, they're typically more expensive than if you find a cost-effective insurance policy outside of your employer-provided plan. 

3. Coverage Options Change If Your Health Declines

If you rely solely on your group insurance plan and then experience a serious medical condition that forces you to leave your position, you could be losing your life insurance plan when your family needs it most.

Many insurance companies will not write new life policies for those with serious pre-existing conditions, making it difficult, if not impossible, to find the coverage you need. If your health problems aren't significant enough to prevent you from working, you may find yourself stuck with the same company indefinitely if you're unable to purchase another policy.

Make sure your family is protected with a life insurance policy from Nicole Gumm Groseclose Insurance Solutions in Clifton Forge, VA. For over 17 years, this expert has provided clients throughout Covington, Bath, Fincastle, Roanoke, Lexington, and Waynesboro with insurance policies designed to protect families from life's unexpected events. Contact Nicole at (540) 968-1569 to request a quote, or visit the company online to learn more.