In this article, we’re going to discuss what employer-provided life insurance is and how to ensure you have enough coverage to protect your family.
What is Employer-Provided Life Insurance?
Employer-provided life insurance is a type of group insurance typically offered as part of your benefits package. The purpose of this insurance is to provide your beneficiaries with some money in the event of your death. Your employer pays some or all of the premiums.
However, there are some shortfalls to be aware of. For example, many employers don’t offer enough life insurance. Experts recommend getting coverage that’s at least six times your annual salary. You’ll need more than this if you have a non-working spouse, a large mortgage or a large family.
Additionally, it’s possible that you could lose your insurance if you change jobs. Make sure you understand your policy and where it’s lacking so you can fill in the gaps as needed.
How Supplemental Life Insurance Works
Basic group life insurance is affordable and convenient. The main issue is if it will provide your family with enough money if you were to die. This is why most people benefit from a supplemental policy. You can do this through your work or through a private insurer. Either is fine, but do find out what your employer will charge and shop around for the best rates.
When choosing a supplemental life insurance policy, there are two main options: term or permanent. With term life insurance, you get coverage for a defined period of time such as 10, 20 or 30 years. If you die during this time, your beneficiaries will get the death benefit. This type of policy is affordable but does not have a cash value.
Permanent life insurance provides coverage for an entire lifetime. As long as you pay your premiums, you’re covered and your family will receive the death benefit if you die. These plans also accumulate a cash value which you can tap into. While expensive, these policies can be used as a savings tool.
Finding Life Insurance in New Jersey to Fit Your Lifestyle
Life insurance protects the people who matter most. To find an affordable life insurance plan that fits your lifestyle, contact Leonard Financial Solutions. We can go over your options for term and whole life insurance and the various plans available.