Many full-time employees are eligible for life insurance through their employee benefits plans, but is the insurance coverage acquired through work enough to meet their family’s needs? The answer depends on several factors, and the Nest Insurance Agency, serving Amarillo, TX, will be happy to review these issues with you.
Life Insurance Through Work
Organizations often offer employee life insurance coverage as part of their benefits plans. This coverage had several advantages for employees:
- Cost: Employees often receive some coverage for free, with the option to buy more.
- Guaranteed: Employees are eligible without medical exams and regardless of their medical history.
- Convenient: Employees receive coverage with little or no effort.
While those are good reasons to accept employer-provided life insurance, the policies often fall short in other areas.
- Limited Coverage: The primary problem with employee-provided life insurance is that the policies typically provide less coverage than families need. For example, the State of Texas offers employees only $5,000 in life insurance and allows supplemental coverage up to four times the employee’s salary. Both amounts fall below a typical family’s needs.
- Tied to Job: Employees often lose coverage when they change employers.
- Spouses: Employee-provided insurance seldom covers spouses.
While it makes sense to accept the free coverage through work, the amount of insurance you need depends on your age, family makeup, job mobility, medical history, and financial resources. Considering those factors, most people need more life insurance than they receive through their jobs.
Working with Nest Insurance Agency
If you live in or near Amarillo, TX, and want to ensure your family is adequately protected, call or stop at Nest Insurance Agency today to receive a quote for the life insurance coverage you need.
