Why isn't my employer's life insurance enough?

Employer-provided group life insurance is a valuable benefit, but it almost never provides sufficient coverage for families with significant financial obligations. Understanding its limitations helps you plan accordingly.

Most employer plans provide one to two times your annual salary as a base benefit, with the option to purchase supplemental coverage up to a multiple of your salary. This is typically far below the 10–12 times income that standard guidelines suggest for income replacement alone.

Coverage is tied to your employment—if you're laid off, change jobs, resign, or retire, coverage generally ends. Conversion options exist but are often expensive and limited. You cannot take your employer's group policy with you the way you can an individual policy.

Additionally, group premiums can increase over time, and benefit amounts don't keep pace with salary growth automatically. Many employees are underinsured because they assume employer coverage is sufficient without doing the math.

A personal policy purchased outside your employer fills these gaps with portable, guaranteed coverage sized to your actual needs. Agents in our network can analyze your employer benefit alongside your family obligations to identify the true gap.