Most jobs these days include life insurance as a benefit for employees. It’s a valuable benefit while employed there, but how well does it protect the employee’s family? Too often, not well enough.
First of all, it was never intended (and normally isn’t) a complete solution. One or two years salary for a young family isn’t enough. What happens if the money’s gone when that 8 year turns 10? What happens if Mom’s 57 but the money’s gone when she turns 59?
Secondly, it only lasts while employed and doesn’t follow the worker if they move to another employer. Or retires. Or becomes disabled. There’s probably an option to continue the coverage after, but the cost to do that could easily be expensive, even unaffordable. And if the insured’s health history is less than favorable, there may not be a good alternative with other companies in the open market, either.
I’ve yet to meet someone who thought of looking at their life insurance needs is a fun idea. If “I already have coverage at work” is used to avoid the topic and do something else which is fun – that’s not good.
As long as it’s recognized as “a piece of the pie,” employer-provided life insurance is a real benefit. It’s rare we find it’s going to be the whole pie. When that’s properly understood, the world becomes a better, safer place for the people who might be left behind.
An independent policy review is a great place to start.
Here at Stratus Financial Partners, we’re committed to making the world a better place-one policy at a time.