Why Employer Life Insurance Might Not Be Enough

February Life Insurance Series: Week 3

Our life insurance series continues!

So far this month, we’ve talked about why you should consider life insurance and the different types available. Today, we’re focusing on something many people overlook: employer-provided life insurance and why it may not be enough.

What You Might Already Have Through Work

If your employer offers benefits, they may include a small life insurance policy—usually $10,000 to $20,000 in term coverage—at little or no cost to you. Sometimes you can “buy up” additional coverage based on your salary (like 1x, 2x, or even 5x your annual income). That’s fantastic if it’s available.

But here’s the catch: that insurance usually isn’t portable.

If you leave your job, retire, or get laid off—you likely lose it.

And if you’ve waited until then to get your own policy, it could be:

• More expensive due to your age

• Harder to qualify for due to health changes (like high blood pressure, cholesterol, or worse)

Why You Still Need Individual Life Insurance

Even if you have employer coverage, you should always consider an individual policy:

• It’s portable (you keep it no matter where you work)

• It guarantees coverage even if your job situation changes

• You can lock in better rates while you’re younger and healthier

💡 Yes, you can have both policies. If something happens to you, both will pay out. That’s double the protection.

At the very least, every adult should carry enough individual life insurance to cover final expenses. And if you have dependents or debt (mortgage, student loans, etc.), a term or whole policy becomes even more important.

What You Can Do This Week

✅ Ask your employer if your life insurance is portable

✅ Find out what the premium would be if you left your job

✅ Schedule time to explore affordable options outside of work

It’s never too early—or too late—to get the protection your family needs. Next week, I’ll bring it all together by discussing how life insurance fits into your full financial picture, including wills and trusts.

Schedule a call with me if you have any questions!

Until then, peace out.