Employees can often acquire life insurance through their employee benefits plan when beginning a new job and during open enrollment periods, but is the coverage received through work enough to meet their family’s needs? The answer depends on several factors, and The Insurance Team serving Queen Creek, AZ, will be happy to review them with you.
Life Insurance Through Work
Organizations often subsidize employee life insurance coverage as part of their benefits plans, and the plans have advantages:
Cost:
Generally, some coverage is free, and employees can buy more.
Guaranteed:
Employees are eligible regardless of medical history.
Convenient:
Acquiring this insurance takes little effort.
While these are good reasons to accept or supplement work-related life insurance, job-related life insurance often falls short.
Limited Coverage:
Policies often provide less than the recommended coverage. For example, the State of Arizona offers employees only $15,000 in life insurance and allows supplemental coverage up to three times their annual salary. Both fall well below a typical family’s needs.
Tied to Job:
A job change often means a loss of coverage.
Spouses:
Spouses are seldom eligible for coverage.
While accepting free coverage through work makes sense, the amount of insurance you need depends on your age, family makeup, job mobility, medical history, and financial resources. When considering those factors, most people need more life insurance than they receive through their jobs.
Working with The Insurance Team
If you are in Queen Creek, AZ, The Insurance Team can determine a life insurance plan to fit your needs. So call or stop in for a quote today, so you can get back to living life knowing your family is adequately protected.
