Many people assume employer-provided life insurance is enough protection for their loved ones. But let’s break it down: if you earn $70,000 a year and your coverage is set at 2x salary, that’s $140,000. After funeral costs, catching up on bills, and a few mortgage payments, that amount can run out much faster than most expect.
The real purpose of life insurance is income replacement—helping your family cover debts, childcare, and daily living expenses for years, not just months. That’s why the common guideline is to target 10–12 times your income. If you subtract what your employer provides from that target, you can see how a gap appears.
It’s also important to remember: job-based policies usually don’t go with you if you leave, retire, or get laid off. Employer-sold supplemental coverage often has the same portability issue, and premiums jump every five years as you age. Locking in a 20- or 30-year term policy while you’re younger—like a healthy 30-year-old securing $500,000 of 20-year term for $25–$30 per month—can be a smart move.
At ASM Insurance & Financial Services, our role is to clarify these options and help you compare solutions without any pressure. Making sure you and your family are well protected starts with understanding how your coverage really works—and where there might be gaps.
