Is employer life insurance enough?

Employer-provided life insurance is a great benefit and something you should absolutely take advantage of if it's offered. The question isn't whether it's good, it's whether it's enough.

Many employer plans provide a death benefit equal to one or two times your annual salary. While that may sound like a lot, it may not go very far if your family still has a mortgage, car loans, young children, or relies on your income to pay everyday living expenses.

Here's something a lot of people don't know. Employer life insurance is typically tied to your job. If you leave your employer, change careers, retire, or your company changes it's benefits, your coverage may be reduced or end altogether. Waiting until later in life to replace that coverage could mean higher premiums and fewer options depending on your age and health.

Employer coverage can be a great foundation, but many people choose to supplement it with an individual permanent policy they own and control. That way, the coverage stays with them regardless of where they work.

Some things to consider:
*Do you know how much life insurance your employer plan provides?
*If you left your job tomorrow, what would happen to your coverage?
*Would your family's financial needs be met with the amount your employer provides?
*Have your income, mortgage, or family responsibilities changes since you enrolled in your employer's plan?
*Would owning your own policy provide additional peace of mind?

Employer life insurance is a valuable employee benefit, but shouldn't automatically be assumed that it's enough. Understanding what you have, what you don't have, and what would happen if your employment changed are all questions worth asking.