Many people tell me they're covered through work. That's good. But most haven't checked what it actually pays or what happens if they change jobs.
Four things to check
- How much is it? Work coverage is often a set amount, like one or two times your salary. Find the number in your benefits portal.
- Does it end if you leave? Usually, yes. Some plans let you take it with you, often at a higher price. Ask HR.
- Is your spouse covered, and for how much? Spouse coverage through work is often small.
- Is it enough for your family? Add up the mortgage, years of income, debts and school. Compare that to what work pays.
Why one or two times salary often falls short
If your family needs to pay off the house, replace your income for several years and cover school, the total can be many times your salary. One or two years of pay covers part of it.
Why a policy of your own helps
- It stays with you if you change jobs, get laid off or retire.
- Your price is locked on level term plans, based on your age and health when you apply.
- You choose the amount and the length.
Keep the work coverage too
Work coverage is often low-cost or free. Keep it. A policy of your own fills the gap and doesn't disappear with the job.
Run your own number
How to figure out how much coverage your family needs, step by step. About 4 minutes.
Find out if you have enough
Our 60-second calculator adds up income, the house, debts and school. Or book a free call and I'll walk through it with you.
Common questions
How much life insurance do employers usually give?
It's often a set amount, like one or two times your salary. Check your benefits portal for your exact amount.
What happens to my work life insurance if I quit?
It usually ends. Some plans let you convert or keep it, often at a higher price. Ask HR before you leave.
Should I buy extra coverage through work or on my own?
It depends on your health and plans. A policy of your own stays with you if you change jobs, and your rate is locked on level term plans.
Does my spouse need coverage too?
Usually, yes. A stay-at-home parent's work, like childcare and running the house, costs real money to replace.
Nick Brown is an independent life insurance agent with NJN Insurance, licensed in Arizona (License 19720244). He compares plans from several companies and explains them clearly. NJN stands for Not Just a Number.