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April 12, 2024

Is the Life Insurance You Have Through Work Enough? 

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Do you have enough life insurance through your work?

Planning for unfortunate circumstances is not an enjoyable use of your time, but doing so can be essential to establishing and maintaining the financial security of both you and your family. After all, if others, such as your spouse or children, depend on you to provide for them, even a single accident or unexpected mishap could have far-reaching ramifications for their quality of life and future prospects.

Fortunately, life insurance can provide a crucial financial safety net for those around you. Still, not all life insurance is the same, and you may need to look beyond immediately available options, such as coverage provided through your employer.

What is it?

Life insurance refers to several types of policies that can provide financial security for beneficiaries, such as your family, in the event of the death of an insured, such as yourself. This type of coverage may be offered through your employer as a component of your employee benefits portfolio. Employer-sponsored life insurance can be valuable and more affordable than you might find in the private market. However, these policies also include various limitations that may make additional coverage advisable.

Do I Need More Insurance Than What My Employer Offers?

Your insurance needs are unique and determined by your specific circumstances. While employer-sponsored life insurance can be convenient and affordable, it may also be insufficient. When analyzing your life insurance needs, consider the following:

  • Type of plan—Life insurance can generally be classified as either term or permanent life insurance, with the former offering coverage for a predetermined amount of time and the latter providing lifelong coverage. Most employer-sponsored plans are term policies, meaning you should make other arrangements if you desire the benefits of permanent coverage.
  • Future employment status—While your employer may offer life insurance at a desirable rate, these policies generally apply only as long as you remain at the company. If you leave for another job or are dismissed from your duties, your coverage will end, and you may lack appropriate financial security.
  • Personal financial needs—Like many types of insurance, policies generally have coverage limits, meaning an established maximum amount of support is available to beneficiaries. If you have significant debts or anticipate long-term financial needs for your family (e.g., college tuition and childcare), you may require higher coverage limits than might be available through your employer’s plan.

We’re Here to Help

At Vila Financial, we have the knowledge, experience and resources to help you and your family understand and acquire the right coverage. Contact us today to learn more.


This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information. 


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