Many people assume their employer’s life insurance is enough, but the reality is often different. For example, if you earn $70,000 a year and your coverage is set at 2x your salary, your loved ones would receive $140,000—an amount that can be quickly diminished by funeral expenses, outstanding bills, and mortgage payments. The real challenge is that income replacement needs to last for many years. Financial guidelines typically recommend 10 to 12 times your annual income to fully cover debts, child care, and the loss of your earning power.
There’s another aspect many overlook: employer coverage usually ends if you change jobs, retire, or face a layoff—leaving you unprotected just when you might need it most. Supplemental coverage through work can also have portability issues, and rates often increase every five years as you age. Exploring a personal term policy early—such as a 20- or 30-year term—can lock in lower rates and give you dependable protection.
A practical first step is to subtract your current employer coverage from your target of 10-12 times your income. For healthy 30-year-olds, this could mean securing $500,000 of 20-year term coverage for about $25–$30 per month.
With my background in accounting and life insurance, I help clients see the full financial picture—ensuring your protection goes beyond the basics and truly supports your family’s future.
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