Many people receive life insurance through their employer and think they’re covered. Although this is a great benefit, there are some caveats that you need to be aware of in order to keep you and your loved ones protected.
- Typically, the payout on an employer issued life insurance policy is equal to your annual salary or 2x your salary. When you consider mortgage payments, planning for college and living expenses, this amount isn’t sufficient enough to provide for a young family or to help them plan for a secure future.
- Your employer offered life insurance policy may not be portable or it may come with an added cost. If you decide to leave your job or lose your job, you’ll probably also lose your life insurance benefit. Buying your own life insurance outside of your employer will allow you to decide how long you’re covered.
- You’ll be playing a numbers game if you rely solely on your employer to provide you with life insurance. It costs more to insure a 36 year old than a 35 year old. If you leave a job after 20 years, your cost for life insurance may be higher due to advanced age or complications from a medical issue. Life insurance doesn’t have to be expensive, especially if you plan ahead.
This month is Life Insurance Awareness Month so we’re sharing some tools and resources with you. Check out our @RiskSOURCE newsletter to learn more about different types of life insurance and factors that can impact your coverage. Plus visit lifehappens.org and try out their calculators to get an idea of the amount of coverage you need.
Ask RiskSOURCE about Simple Life, a guaranteed term policy with no medical exam or blood test.*
*Based on eligibility.