Questions to Ask About Your Employer-Offered Life Insurance

Understanding the life insurance coverage you have through work.man holding a notepad with question mark on it

Many employers offer their staff life insurance coverage as part of their employee benefits package.  While this is a great benefit to take advantage of, how much do you really know about this coverage?  Ask these questions to better understand your employer-offered life insurance.

  • Do I have enough coverage?

Typically, employer-offered life insurance has much lower coverage limits than personal life insurance policies.  On average, work-sponsored life insurance only offers one- to three-times your annual salary as a death benefit.  While this may be enough to help your family in the short term, this benefit is not enough to guarantee their financial stability for a longer period of time.  If your employer-offered life insurance is not offering enough coverage to handle your debts, ongoing financial obligations, final expenses, and your family’s everyday expenses, then you need to supplement with a personal life insurance policy.

  • Can I adjust my policy?

Life is constantly changing, and it’s important that your life insurance policy is flexible enough to adapt to your shifting needs.  If you do not have the ability to adjust your coverage limits or add additional coverages to your employer-offered life insurance policy, then you may need to seek supplemental coverage elsewhere.

  • What happens if I change jobs?

Finally, you need to know what will happen to your coverage if you switch jobs or retire.  In most cases, employees do not get to keep their life insurance when they leave the employer.  Even if you are allowed to keep your policy, it will probably be at a significant cost.  In this case, it’s best to secure a personal life insurance policy so you can maintain coverage no matter where your professional journey takes you.

These are some of the questions that you should ask to better understand your employer-offered life insurance.  Do you need to supplement your work insurance with a personal policy?  If so, then contact the experts at VGW Walker Insurance in Texas.  We are ready to get you the coverage that you need today.