For millions of working Americans, employer-provided life insurance is a valuable perk. However, it may not provide enough coverage for your loved ones after you’re gone. Check out this article for information on when it may be necessary to purchase additional coverage.   

Do you have a life insurance policy provided by your employer? Millions of working Americans receive group term life insurance as a workplace benefit. If you're covered by a group policy at your job, it's important to understand how it works and whether or not the provided coverage is enough.

Although employer-sponsored life insurance policies can be a convenient and affordable-- or free-- job perk, here are some reasons why you may want to purchase an additional individual policy on your own to help protect your loved ones:

• Your workplace policy may not provide enough coverage for your family’s needs.
  Some employer-provided life insurance policies offer benefits that are one to three times your current salary. For someone who is debt-free, single, and without dependents, that might be enough. However, some families need more than one, two, or three times their annual salary to secure their dependents' financial future.
  
  "Imagine you make $60,000 a year, and you secure somewhere between $60,000 to $180,000 in employer-sponsored life insurance for your family. While this may sound like a lot of coverage, you may find that it doesn't fully cover end-of-life bills, debts, and your family's daily living expenses.
  
  Southern Farm Bureau^® Life Insurance Company has an online tool that can help you calculate the right amount of life insurance for you and your family. Click here to determine your family’s needs now.¹
   
• It may not be guaranteed.
  With group-term life insurance, your coverage can be linked to your employment. You could possibly lose this coverage if you leave the company, at which point you will be left to seek out an individual life insurance policy.     
  
  In addition, your employer might be able to drop this benefit at any time.
   
• Buying an individual policy may become more difficult as time passes.
  Generally, the earlier in life you purchase a life insurance policy, the lower the premium rates will be. Rates typically go up with age, so that means if you’re 40, you’re likely going to pay more than someone who is 30 and in similar health. Many life insurance policies also require a health examination, so purchasing a policy after you develop a health condition may prove to be difficult or expensive.
  
  There are two major types of life insurance sold to individuals – term and whole life (sometimes referred to as “permanent”). Term pays if death occurs during the term of the policy, which is usually from 1 to 30 years, and whole life pays a death benefit whenever you die – even if you live to 100, according to the Insurance Information Institute. Click here to explore the life insurance policy types offered by KFB Insurance through Southern Farm Bureau^® Life Insurance Company.

So, is employer-provided life insurance enough? No two families are alike. It is important to take the time to weigh your needs against the coverages provided. At KFB Insurance, we want to make choosing the right life insurance policy for your family’s needs as stress-free as possible by giving you the information you need to make educated decisions. We’re proud to offer life insurance coverage through Southern Farm Bureau^® Life Insurance Company. Click here to get in touch with a local agent who can help you pick a plan.

_{¹The amount of life insurance coverage that you may qualify or apply for is subject to medical and financial underwriting by Southern Farm Bureau Life Insurance Company in Jackson, MS.}