Many people assume their employer-provided life insurance is enough—but a closer look often reveals some important gaps. For example, if you earn $70,000 and your workplace policy covers 2x your salary, your loved ones would receive $140,000. While that sounds significant, funeral costs, lingering bills, and mortgage payments can quickly reduce that amount. The real concern is ongoing income replacement; industry guidelines suggest securing 10–12 times your income to cover debts, childcare, and the years your earnings would need to be replaced.
Another detail I see overlooked: your job-based coverage is tied to your employment. If you leave, retire, or face layoffs, that protection can vanish—sometimes when you need it most. Even supplemental policies sold through work often have portability issues, and the premiums typically increase in five-year age bands. That’s why I encourage clients to consider locking in a 20- or 30-year term policy early. For a healthy 30-year-old, $500,000 of 20-year term coverage might cost just $25–$30 per month.
A thorough review starts by subtracting what your employer provides from your true coverage needs. As someone who’s spent years helping Houstonians and clients across multiple states navigate these decisions, I believe clear, proactive planning leads to peace of mind—today and for the years ahead.
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