Understanding Whether Your Employer Offers Enough Life Insurance

Part of your benefits with your employer might include group life insurance. It is an excellent part of a benefits package, but that does not mean it meets your needs. And if you rely only on that plan, you may face some other issues. That is why you’ll want to consider other options in addition to what the employer offers.

Getting Long-Term Care

Even if your employer already provides you with enough life insurance, you may still want to consider getting long-term care insurance. It is a great way to protect yourself from the costs associated with disability in your later years. If you need care for this condition, you’ll need a way of covering the cost since regular health insurance does not cover that. And other types of coverage are only suitable for short stays in rehab centers or nursing homes.

Long-term insurance can protect your savings since nursing homes can quickly drain your savings. And having a policy also lets you have more options for your care. You can get improved quality of care if you spend more. Still, there is a cost associated with the policies. Some would argue that those funds are better placed into an investment account. You can look at a guide to see if elderly care insurance is worthwhile to choose for yourself.

Seeing if You Have Enough Coverage

Basic insurance from your employer is often free or offered at a lower cost. You could also get more coverage at a relatively low rate. However, that value might not be enough, especially if you have a spouse or children who rely on you, bringing in a certain amount of income. You should look for between six to 12 times what you make each year. You should be able to get at least this amount of coverage through your employer as supplemental coverage. That is enough for many people, but you might need to consider getting even more if you have a mortgage or a bigger family.

Job Changes and Your Coverage

It is best to avoid having gaps in coverage since you might need it at any time. And if your job changes, you may go for a time without having a policy. If you get laid off or change your job, you may not have life insurance during that time. If your new job does not offer the same type of coverage, you may need to purchase all new policies. Not all plans let you convert group policies into individual ones. And even if you can, it will most likely become much more expensive.

Health Issues and Coverage

If you leave your current job because you have a health issue, you’ll face another problem. If you rely only on your group policy and end up leaving that, you’ll no longer have a policy when you and your family most need it. And it will become much more difficult to purchase any at an affordable price. Even if you do not have health problems, the issues could still limit your employment in the future if you need this coverage. You may feel that you cannot leave your job for another one since you need the insurance at the current position.