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Do You Need Life Insurance Even If You Get Coverage at Your Work?

Posted June 10, 2018 by EasyFinance.com to Financial Advice 0 0

Whether you are young, middle-aged, or old, you need to have life insurance. After all, if you were to suddenly pass away, how would your family do financially without you? What would your spouse and children do? Does your family have enough money to survive? And what about your final expenses? Who would take care of that?

You may understand the importance of life insurance, and get it at work. After all, many places of employment offer life insurance as a perk at the workplace. So if you have this med life insurance, you may think that you do not have to get additional coverage. After all, you have life insurance at the workplace, and that may seem sufficient.

However, there are some very good reasons to get an additional life insurance policy of your own, even if you have life insurance at work. Here are the most common reasons:

The coverage may not be sufficient

Chances are that the life insurance coverage may be enough to bury you and pay for the rest of your final expenses, like a funeral, but it may not to take care of all of the expenses you may have. For example, what if you have a mortgage with your spouse? How will your significant other make the payments without your income? This can be particularly sketchy if you are the primary breadwinner, and your spouse is a stay-at-home parent.

Some life insurance policies at the workplace may just cover the basics – enough to pay for your final expenses, such as a funeral as well as a burial or cremation.  In other cases, your employer may offer you a bit more coverage, or you can pay for additional life insurance coverage at the office. However, this still may not be enough coverage for you.

Generally speaking, a good rule of thumb is to buy a life insurance policy worth 7 to 10 times your annual income. That will not just pay for your funeral and burial, but can also potentially help your beneficiaries survive without your income. But in many cases, you will only be able to get such coverage on your own.

What happens if you leave the job or get laid off?

It happens in this economy – you could potentially lose your job in the blink of an eye. So what happens if you lose your job? Well, you may completely lose your life insurance coverage, which can leave you up the creek if you do not have another life insurance policy. Or, you may potentially be able to take over the life insurance policy and make the payments, but you may discover that the premiums are potentially more expensive than you may have been able to have gotten on your own when you first got the policy.

What should you do when it comes to med life insurance?

If you are offered a free life insurance policy with a job, you should take it, of course, But just keep in mind when it comes to med life insurance that you should have a policy of your own as well. 

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