Benefits Enrollment Preparation
Life insurance for the way you live
Protect what matters to you, today and tomorrow
As your life continues to grow and change, so should the way you protect what matters most. That’s why it’s important to have life insurance coverage that takes care of who and what you love, no matter where you are in your journey. If you haven’t thought about your life insurance needs in a while, now is a great time to make sure that you have the right level of protection in place. Luckily, you can likely get the coverage you need through your workplace.
How much life insurance protection do you need?
The amount of life insurance you need will change with your life. Getting married, growing your family or getting a new job are all good times to review your life insurance needs. Even if you already have some life insurance, it’s important to make sure you have enough.
A general guideline is to have coverage equal to seven to ten times your annual salary.1
That might sound like a lot, but consider this: It can take years for a family to financially recover from the loss of a loved one.2 Even if you already have some life insurance, are you sure that it could meet your financial needs?
Working adults who have lost their spouse or partner who was the household’s main wage earner report that after 5–7 years, they are still feeling the financial impact.³
The right times to consider getting life insurance
Life insurance can be an important part of your financial wellness as your life changes.
- Starting out on your own
If you pass away and don't have life insurance, final expenses and other costs could be a burden on those around you. For example, the average cost of a funeral is $8,000–$10,000.4 And if anyone, like a parent, has co-signed for loans or other types of debt you have — including some student loans — that person could be responsible for the debt, or related taxes.5
- Taking care of your family
- Working parent
You need a death benefit large enough to replace your income and cover family expenses for a given amount of time, usually until your kids are out of the house or your mortgage is paid off, but it could be longer. - Stay-at-home parent with a young family
When a parent chooses to care for children full time rather than pursue a career, they have life insurance needs, because their labor has economic value. If a stay-at-home parent passes away unexpectedly, how would their spouse pay for child care or other services that a single working parent might rely on to help keep the household running? Life insurance can help. - Homeowner
If you have a mortgage on your house and something should happen to you, life insurance can help to ensure that your family can continue to live their lives in the place they call home.
- Working parent
- Creating a legacy
Hoping to head into retirement within the next five to 10 years? Congratulations! Maybe you plan to travel, or shift your professional life into consulting or part-time gigs. As you reflect and recognize how far you’ve come, you may also want to look more closely at the legacy you’d like to leave.
Top three reasons reported for obtaining life insurance are to cover final expenses, replace lost income, and leave an inheritance.⁶
Frequently asked questions
- What are some of the benefits only life insurance can provide?
Life insurance is paid directly to your beneficiaries, generally not subject to income taxes, and the value is not affected by market conditions.
- What are the advantages of getting it through work?
Purchasing life insurance through work is often less expensive because of the buying power of a group. What’s more, the process can be easier, especially if the coverage your employer is offering does not require health questions or a medical exam, and premiums are paid through convenient and automatic payroll deductions.
- I’m still concerned about how much life insurance costs. Would I be able to afford it even if I do get it through work?
Life insurance – especially when obtained through your workplace – is likely more affordable than you think. A 2022 study revealed more than half of consumers think that life insurance coverage costs are three times more than they are in reality, and 43% of millennials (those between the ages of 27-42 years old) believe the costs are six times higher.7
- What if I leave my company? Can I take my life insurance coverage with me?
Yes, you can take the coverage with you if you change jobs or retire. You will pay the premium yourself, typically on a monthly or annual basis, and it will be different than the group rate.
How to take advantage of your life insurance benefits at work
Review the benefits offered through your workplace and determine how much life insurance is available to you. If your employer provides life insurance as a benefit, consider this an easy and convenient way to secure additional financial protection for who and what you love.
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