Additional Life Insurance
It’s always great when employers offer basic life insurance for their employees. This basic life insurance is sometimes offered free of charge to the employees, but a lot of times it doesn’t cover everything you need. Even though the basic life insurance plan may not be enough to cover your family, you should still take it. You can add an additional life insurance plan to make up the difference of what you need to be covered.
Why You Should Add an Additional Life Insurance Plan
The coverage may not be enough.
A basic life insurance plan is usually only two or three times the employee’s salary, which isn’t nearly enough if you have people depending on your income. Adding an additional plan is especially important if you have a young family to support. You should calculate your family’s daily living expenses, kid’s college funds, and paying off your mortgage or any other debt.
Many are AD&D policies.
An AD&D life insurance policy provides a death benefit to your beneficiary, but only if your death was caused by an accident. What you would need is a standard life insurance policy that covers your death even if is wasn’t caused by an accident.
It may be a burial insurance policy.
If the life insurance policy that your work offers you is a burial insurance policy, then you definitely need an additional life insurance plan. A burial insurance policy only covers the cost of funeral and burial expenses, which are generally around $5,000 to $15,000.
It may not be portable.
Unless you plan on staying at your current job for the rest of your life, you will probably want to get an additional life insurance plan. The basic life insurance plans that are offered by employers generally don’t transfer when you are no longer working there. Look into your work policy and find out if you can pay a premium to get it to transfer. If it doesn’t, then consider getting a life insurance plan outside of your work.
Get the right coverage.
Your work plan may be free, which you should take advantage of, but it probably doesn’t cover everything you need. When you get a life insurance plan outside of your work, you get to choose the amount of coverage that meets your individual needs.