Getting things for free is always a good thing for the most part. This includes one of the free benefits that most employers offer, which is life insurance.
The downside is when we go through a client’s financial situation, the question comes up about life insurance. The usual answer is “Yes, I have it with my job,” but they aren’t sure how much or what it covers, so when we review the policy, the coverage is usually one time their annual salary.
The concerning part is that most companies only offer life insurance while employed which means that coverage ends once you depart the company.
Another concerning thing is that a majority of people who sign up for life insurance through their job, never look at it again or add additional coverage.
Why is it concerning? Well think about it this way, let us say you take advantage of the perk and have $50,000 of coverage. You have a family and a mortgage that depend on you and you unexpectedly pass away, leaving your spouse the debt that you have incurred and now they have to find a way to pay the mortgage, funeral expenses, taking care of the kids, and many other things that come into play. Now ask yourself if you think $50,000 will take care of those immediate and future expenses? Absolutely not in most cases!
Now I get it, most people don’t anticipate passing away early or want to pay for something they can’t physically see, but life insurance can actually be very affordable and can be the difference between one unfortunate situation becoming multiple unfortunate situations. So don’t put your family in a situation that you wouldn’t want them in to begin with. Just check rates and be informed.
If you have any questions about the content discussed or any other topic, feel free to reach out.
Check out our website www.medinaadvising.com