Life Insurance Through Your Employer: Pros & Cons

Life Insurance Through Your Employer: Should You Buy It?

Life insurance through your employer—also known as group life insurance—is one of the most common benefits companies offer. It’s typically free or very affordable, making it an attractive option for many employees. But while it’s a great perk, it may not be enough on its own to fully protect your loved ones.

Employer-provided life insurance is usually offered in amounts based on your salary, such as one or two times your annual income. While this sounds like a lot, it often falls short when you factor in a mortgage, debts, children’s education costs, and everyday living expenses.

Pros of Life Insurance Through Your Employer

Getting life insurance at work comes with some undeniable advantages:

• Low or no cost to you, since employers often cover part or all of the premium

• No medical exam required, making it easy to qualify

• Automatic enrollment for eligible employees

• Convenient payroll deductions for any additional coverage you buy

Cons to Consider

While workplace life insurance is a good starting point, it’s not perfect:

• Limited coverage amounts that may not meet your family’s needs

• Loss of coverage if you change jobs, unless it’s portable (and even then, costs may rise)

• One-size-fits-all structure, meaning you can’t customize it as much as an individual policy

• May not cover non-working spouses or provide enough for dependents long-term

When to Supplement Your Coverage

If you have dependents, a mortgage, or other financial obligations, it’s often wise to combine your group policy with an individual life insurance plan. Supplemental life insurance can bridge the gap, ensuring your loved ones have enough financial security no matter what happens.

At ProvaLife, we help you review your workplace life insurance benefits and determine if they’re enough—or if you need additional coverage. That way, you can enjoy the perks of your employer’s policy while making sure your family’s future is fully protected.

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