Reasons Why Employer Sponsored Life Insurance May Not Be Enough

Life insurance has become a very popular benefit that many employers are offering their employees. While it is a nice benefit to have, it is a mistake to rely completely on the life insurance your employer is providing to you. Instead, it is very important to consider getting additional life insurance from another source. Continue reading to discover a few reasons why you may want to get more than what your employer offers as basic benefits.

  • If you leave the company, your life insurance is canceled. While having life insurance through your employer is a great benefit to have, if you ever leave the company, whether it is y choice or not, you lose the life insurance they purchased on your behalf. It does not come with you to your new position or after retirement.
  • You can only get the option the employer has chosen for you. By sticking with the plan your employer has for you (and we are not saying you should decline the insurance offered to you), you only get the option that they have chosen for you. You do not get to choose the life insurance plan that you want.
  • Your employer likely does not provide enough coverage. Many employers offer life insurance that is equal to one to two times the annual base salary. This may seem like a lot but it is recommended by experts that you have at least five to seven times your annual base salary.

If you are interested in getting more life insurance and exploring your options, be sure to contact FM Insurance serving Oklahoma City, OK. You can get a quote for additional life insurance that fits your budget as well as take a deeper look into the policy your employer has for you.