Employer-Sponsored Life Insurance: What Employees Should Know
Many employees receive some life insurance through work. Employer-sponsored coverage can be a valuable benefit, but it is important to understand exactly what the coverage provides and whether it is enough for your household.
Start by reviewing the amount of coverage, the cost, the beneficiary designation, and any limitations in the plan documents. You should also find out what happens to the coverage if you change jobs, retire, or lose eligibility. The answer depends on the specific employer plan and its terms.
Workplace coverage may be enough for some people, but others may need additional individual coverage. A family with a mortgage, children, or substantial financial responsibilities may need more protection than an employer plan provides. Individual coverage may also offer more control if employment changes.
This does not mean employer coverage is unhelpful. It means it should be understood as one part of the overall protection plan.
Review your workplace coverage whenever you change jobs, experience a major life event, or receive an updated benefits statement.
Book a call with us to review how your employer-sponsored coverage fits with your overall life insurance needs.
Request our free Employer Life Insurance Review Checklist to help you compare workplace coverage with your family’s needs.