Employer-sponsored life insurance is a great benefit, but it may not provide enough coverage to protect your family. Most employer-sponsored policies offer coverage that is 1 to 2 times your annual salary. So if you make $50,000 per year, your employer may offer $100,000 in life insurance coverage at very little cost to you. While this is helpful, you may need much more coverage to support your family. Many financial experts recommend that you have coverage that is actually 10 to 12 times more than your annual salary, or enough to replace your income for X years to help pay for expenses or services you used to provide, like living expenses, child care, college expenses, bills, and mortgage payments.
Another disadvantage to relying on employer-sponsored coverage is that most policies through work only last as long as you are employed there. Many people tend to lose their insurance coverage when they change jobs, are laid off, or when they retire. Have you thought about owning coverage outside of your employer-sponsored coverage?
You might consider supplementing your employer-sponsored life insurance with a policy from Ethos—so you get the full coverage you need to protect your family when they need it the most.