Is Life Insurance Through Work Enough?

The short answerFor most families, probably not on its own. Group coverage through work is often a modest amount, commonly around 1 to 2 times salary, and it usually ends or changes if you leave, retire or get laid off. Think of it as a nice extra, and make sure your core protection is a policy you own.

Why work coverage can fall short

The amount. A DIME calculation often comes out far higher than 1 to 2 times salary.
It's tied to the job. Change jobs, get laid off or retire and the coverage may end. Converting or porting it, if allowed, can be expensive.
You don't control it. The employer chooses the plan and can change it.

When it might be enough

If you're single, have no dependents and no shared debt, work coverage may handle a funeral and final bills. For anyone else, it's worth running the numbers.

Owning your own policy

A policy you own goes with you from job to job, and the price is based on your age and health when you buy it. Pairing it with work coverage is common. You don't need a lot of money to protect your tomorrow, today.

Get your own number in about 3 minutes

Our free Family Needs Analysis walks you through it with your real numbers. No sign-up needed to see your result.

Start the free needs analysis

Related free tools

FAST calculatorSee where money leaks each month and what you could redirect toward protecting your family.See what you may qualify forAnswer a few health questions and see which options are likely to fit.Mortgage coverage calculatorStart with your loan balance and monthly payment.

Common follow-up questions

Can I keep my work life insurance if I leave?

Some plans let you convert or port coverage, but it's often more expensive. Check your plan documents.

Should I buy extra 'supplemental' coverage at work?

It can be convenient, but compare it with an individual policy you own. Supplemental group rates can rise as you age.

How much should I have outside of work?

Run the DIME numbers, subtract your work coverage, and treat the gap as the amount to look at.

Does work coverage count in the needs analysis?

Yes. Enter it as existing coverage, keeping in mind it may not stay with you.

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Is the life insurance through my job enough?