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Do I need additional life insurance if I have a policy through my employer?

Ali Katz


Q: Do I need additional life insurance if I already have a policy through my employer?

-Insurance Enquiry

A: Dear Enquiry:

Group policies offered by employers provide an easy and affordable way to obtain life insurance—but they often aren’t enough on their own. While the amount of coverage you need is dependent upon your particular family situation, there are several reasons why purchasing an additional policy is a good idea.

For one, the amount of coverage you obtain through your employer may not be enough to meet your loved ones’ long-term financial needs after your death. Having another policy to supplement the death benefit paid by your employer’s policy can help ensure your family’s future is secure. 

Moreover, if you change jobs, you’ll almost certainly lose your life insurance. And even if your employer lets you convert your group policy to a personal policy when you leave, such coverage is usually super expensive. Considering that life insurance is more costly and difficult to qualify for as you get older, you’re better off purchasing a personal policy now rather than in the future, when coverage might be extremely expensive or even impossible to obtain.

Determining exactly how much life insurance coverage your family requires can be a complicated matter. Before you purchase additional coverage, meet with a Personal Family Lawyer® to work out a financial plan that will provide for your family’s future no matter what.