Is Life Insurance Through Work Enough for Your Family?

Life insurance through work may be enough for some households, but it depends on the benefit amount, how long your family would need support, and what happens to coverage when your employment changes. Having a policy is the starting point. Understanding what it would actually cover is the next step.

What does your employer plan provide?

Start with your benefits statement. Confirm the death benefit, beneficiary information, employee cost, and whether you purchased supplemental coverage. Basic workplace insurance can be a valuable benefit, particularly when your employer pays for it. There is no reason to dismiss coverage you already have.

The question is whether the amount matches your family's responsibilities. Think about housing, everyday expenses, childcare, debts, and the value of unpaid caregiving.

A simple way to put the number in perspective

Imagine a household that would need $4,000 a month of replacement support. A $100,000 benefit represents 25 months of that support before funeral costs, debt repayment, or other expenses. This simplified example ignores investment returns and inflation; it is a starting conversation, not a personalized coverage recommendation.

Would that amount give your household enough time to adjust?

What happens if you change jobs?

Ask HR what happens if you resign, retire, are laid off, or stop meeting eligibility requirements. Some plans offer portability or conversion options. Availability, deadlines, premiums, and coverage terms vary, so get the details before employment ends.

An individual policy can provide coverage independent of your employer, subject to its premiums and policy terms. Compare that option with keeping or supplementing your group coverage.

Questions to bring to a coverage review

• What is my current benefit amount?
• How long would my household need financial support?
• Which savings are genuinely available for that purpose?
• Can I continue this coverage after leaving work, and at what cost?

Frequently asked questions

Should I cancel my workplace coverage?

Not automatically. Review its value alongside any individual policy. Do not cancel existing protection before replacement coverage is approved and in force.

Does my spouse need coverage if they do not earn a paycheck?

Consider the cost of replacing childcare, household management, and other unpaid work—not just wages.

Want to understand what your current coverage would actually do for your family? Schedule a conversation with LHG Financial at lhgfinancial.com. No pressure—just clarity.

Sources: Guardian: workplace life insurance; MetLife: continuation options.

Educational information. Coverage, eligibility, and continuation rights depend on the policy and plan.