I have life insurance through work. Do I need to buy more outside of work?

Question

I have life insurance from work and there is this agent who is trying to get me to by more. Why should I buy life insurance from this guy when I already have coverage from work?

Answer 1

It depends on how much insurance your work is providing and if that is enough to cover your family's needs in the event you die.

You should also consider that if you leave your current employer, you could lose that insurance.

Answer 2

Life insurance is designed to protect a family against the financial burdens that accompany the premature death of a breadwinner. Would your death pose such a hardship? If so, you need enough coverage to replace your income for a reasonable period of time so your family can adjust to the loss—5 to 10 years. For example, if you make $50,000 a year, then you need between $250,000 and $500,000 worth of insurance. Good luck!

Answer 3

Yes you should.  If you leave your job (or your job leaves you), the insurance disappears.  Go for level term life insurance.

Answer 4

Having life insurance through work always makes sense, as it is usually very inexpensive and most of the time, guaranteed issue.  However, just like anything you get from work, you can't take it with you once / if you leave your employer.

Meaning, some "group life insurance" plans will allow you to "convert" the policy; yet will have to pay "individual rates" at a much higher rate that you could buy on your own.

Why?  Well, that "convertability" is offered to all; regardless of age and health and medical condition, it is offered.  Hence, the insurance company will charge a higher rate, taking into account "healthy" and "unheathly" people.

In addition group insurance does go up in time, depending on what "age bracket" you fall in.  Those are usually in 5 year increments.  At younger ages - under 40 - no big deal.

Buying some life insurance on your own is a wise plan; regardless of how much is afforded to you through work.  For the simple reason that people do change jobs of their lifetime, yet whatever "individual" life insurance you own stay with you for as long as YOU want - you don't loose it.

Of course, what kind of life insurance, the amount, the costs, etc., is something you'd want to decide on.  But the premise of buying at least some "outside" insurance is always a good idea also.

Hope that helps, and make sense.