Submitted by Melanie Bakala

If your employer provides you with a life insurance benefit, that is great.    But before you decide that the coverage you have at work is adequate, I’d like you to think about this:

Will you work there until you retire?

Your employer-provided life insurance is tied to your employment status.  If you change jobs, coverage you can’t always take it with you.   Even if you can take it with you, it typically comes with an increased rate.

Is it enough?

One of the biggest misconceptions about life insurance is that if you have coverage through work, you’re set. That’s not usually the case, especially if you own a home or have children. Experts typically recommend having 5 to 10 times your annual income in life insurance.  That’s a big difference between the one or two times your annual salary that is standard with employer-provided life insurance.

You might still need life insurance after you retire

When we retire, we don’t have to worry about replacing our income. But we do need to think about our final expense costs like burial or cremation and medical bills. Most people don’t want to burden their children with having to find the money to pay these expenses.

“Having a long term plan for your life insurance is key,” said Melanie Bakala, State Farm Agent. “I encourage people to sit with an insurance professional to determine how much coverage they need now, how much they will need later, and to put together a plan.”

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