Is the Life Insurance You Get Through Work Enough?

If your job includes life insurance, that’s a valuable benefit — and for many people, it’s the first coverage they ever have.

The question is whether it’s enough on its own.

Workplace life insurance is often designed to provide a basic level of protection, but your actual needs may be higher. And because the coverage is usually tied to your job, it’s also
worth knowing what happens if you change employers or retire.

A quick look at the numbers can help you see whether your workplace coverage is doing the whole job or just part of it.

The amount of life insurance you get through work depends on your employer’s benefits plan. Some plans provide a fixed amount of coverage, while others base it on your salary — for example, one or two times your annual income.

That can be a useful starting point, but it may not be enough to cover everything your family would need if your income suddenly disappeared.

It’s worth checking:

• How much coverage you actually have
• Whether the amount changes with your salary
• If your spouse or dependants are included as beneficiaries
• Whether the benefit would cover your mortgage, debts, and everyday expenses

The number on your benefits statement may look substantial, but the better question is: how long would that money actually support your family?

To get a better idea of how much life insurance coverage you may actually need, try our Life Insurance Coverage Calculator. It can help you estimate your needs based on your financial responsibilities and the people who depend on you.

You may want to take a closer look at your coverage if you have:

• A mortgage or other large debts
• Children or other dependants
• A spouse who relies on your income
• Ongoing education or childcare costs
• Significant monthly household expenses
• Only a small amount of coverage through work

It’s also worth thinking about how long the benefit would actually last. A payout that seems substantial at first may only cover a limited number of years once mortgage payments, bills, and everyday living costs are taken into account.

Another point to consider is that workplace life insurance is usually tied to your employment. If you leave your job, retire, or lose your benefits, that coverage may end or change.

Some employer plans may give you the option to convert your group coverage into an individual policy, but the rules, deadlines, and costs can vary. That is why it is worth checking your benefits before you leave a job rather than assuming the coverage will automatically continue.

Having a personal life insurance policy can help avoid that uncertainty because it stays with you regardless of where you work.

Workplace life insurance can be a helpful starting point, but it may not cover all of your financial responsibilities. Adding a personal term life insurance policy can help fill that gap, especially if you have a mortgage, children, debts, or a partner who depends on your income.

Personal coverage also gives you more control because it is not tied to your employer. You can keep the policy if you change jobs, become self-employed, or retire. With options such as 10-year or 20-year terms and fixed premiums during the term, it can be a practical way to strengthen your overall protection.

Yes. You can have workplace life insurance and a personal life insurance policy at the same time, and for many people, the two can work well together.

Your workplace plan can provide a basic layer of coverage, while a personal policy can add the extra protection your family may need. It also gives you coverage that is separate from your job, which can be especially useful if you change employers, become self-employed, or retire.

You do not necessarily have to choose one or the other. The goal is simply to make sure the total coverage you have matches your family’s needs.

Workplace life insurance is a valuable benefit, but it is worth knowing exactly how much protection you have and whether it would be enough for your family’s needs.

A quick review can help you spot any gaps.

Apply for a quote today and speak with a licensed advisor about your current coverage and the options available to you.