Traditionally, most employers offered job benefits designed to attract and retain employees. Benefits like vacation days, sick leave, health insurance and life insurance were what employees expected to receive. However, in today’s economy fewer and fewer employers can offer these benefits to their employees. More and more people are losing their jobs and along with them, their benefits. Even if you are lucky enough to have these employer provided benefits, there are reasons why the life insurance issued by your employer may not be enough.

The amount of coverage provided by an employer-sponsored life insurance policy will vary from company to company. This is because of the large number of employees that need coverage and the desire of the employer to keep premiums low. Many employees who receive life insurance from their employers find that the payout is less than if they had purchased their own life insurance policy.

Employer issued life insurance may not be enough because the policies are designed for a large group and not for the needs of the individual. So, one does not have the ability to chose the policy that works best for them and their family.

Additionally, the employer may choose to terminate the policy for all employees, the employee may leave the company or the company may become insolvent and have to close. This can be detrimental to the person who doesn’t have their own life insurance policy for many reasons; the older one is the more life insurance will cost them or health issues, such as recent cancer treatment, may make them uninsurable.

Life insurance obtained through private companies usually pay claims quickly. With life insurance through work it can take 30 days or more after a person dies to receive the insurance money. While this may not seem like a long time, for a family struggling with the loss of a loved one and the financial strain that can accompany that, it can seem like forever.

These are just a few of the reasons why one’s life insurance issued by their job may not be enough for the individual. To avoid these problems, individuals should think about alternatives as opposed to only relying on their employment issued life insurance policy. This will help one to determine if their bases are covered in regards to having a life insurance policy in that will be enough to protect their loved ones down the road.