Many people rely on employer-provided life insurance, but it’s important to take a closer look at how far that coverage might actually go. For example, if you earn $70,000 and your job offers coverage at twice your salary, that’s a $140,000 policy. After funeral costs, outstanding bills, and mortgage payments, that amount can shrink rapidly—often leaving a significant gap for your loved ones.
Standard guidelines recommend carrying 10–12 times your income in life insurance, designed to help with debts, childcare, and replacing lost earnings over several years. It’s also worth noting that employer coverage is tied to your job—if you retire, are laid off, or switch employers, your protection could end, and getting new coverage later might be pricier or even unavailable. Supplemental insurance purchased through work can run into similar portability issues, and rates often increase in 5-year age bands.
One way to protect your family’s future: calculate the difference between your employer-provided coverage and that 10–12x income guideline. Locking in a personal term policy early can be very cost-effective—a healthy 30-year-old could secure $500,000 of 20-year term coverage for around $25–$30 per month.
At ASM Insurance & Financial Services, our goal is to make these options clear and support you with transparent, personalized guidance. Reviewing your workplace benefits and understanding how they fit into your broader financial plan is a key part of ensuring your coverage truly matches your needs.
