Do You Need Supplemental Life Insurance?

The good news is your company offers life insurance as part of an employee benefits package. The bad news is it may not be enough. You may need to look into supplemental life insurance to fill in the financial gaps.

According to a 2010 study by LIMRA, a life insurance and financial services research and consulting association, 1 in 4 U.S. families relies on group life insurance to provide fiscal stability in case a wage earner dies. However, while employer-sponsored group plans are often free or substantially cheaper than individual life insurance policies, experts say that these group plans rarely provide enough coverage and could potentially leave you high and dry should you lose your job or move to a different company.

The major problem with employer-sponsored life insurance is most companies simply don't offer enough. Employers who offer life insurance benefits typically pay for coverage equivalent to one to two times the employee's salary, says Steve Zadeh, manager of sales development for Kansas City Life Insurance Co. in Missouri.

For employees with dependents, this company-sponsored coverage is rarely enough. To guarantee your family’s financial future, consider purchasing a personal life insurance policy tailored to meet your needs. Term life and permanent life insurance policies are two options you can use to protect your family’s financial future. Choose the life insurance policy that will best fit your family’s needs. Remember, life insurance policies are designed to alleviate financial stress and help your family heal from the biggest burden of all---emotional loss.