Congratulations! Nothing is more exciting than starting a new job. Your first few days will likely be a whirlwind of getting to know your new coworkers, learning your new surroundings, and getting adjusted to your new role. At some point, it is likely that HR or your manager will provide you with your benefits and ask you to make decisions when it comes to healthcare, 401Ks, and more. It can feel overwhelming at times, let us help make it a little easier when it comes to life insurance.

Employer-Provided Life Insurance.

Your employer may offer life insurance as part of their benefits package and the type of life insurance, amount of coverage, and cost to the employee can vary from business to business. Depending on the options your employer selected, this can be a great benefit. You may pay very little to nothing for this coverage, have guaranteed coverage, and be able to have any premiums deducted directly from your paycheck.

When it comes to employer-provided life insurance it can sound like a no-brainer, but there are some key pieces you should consider when making the decision to sign up or not. These include:

  • Limitations on Coverage. Employer-provided life insurance and its coverage is solely determined by your employer, which means it may not be enough. Often times these plans are smaller and not designed to cover all of your debt and end-of-life expenses.
  • Lack of Control. Referring back to the previous consideration, your employer makes the decisions for this type of coverage. You have no control over the coverage options or type of policy.
  • Dependent on Employment. Employer-provided life insurance is linked to your employment. This means that when your employment ends, so does the coverage. You may be offered the option to convert the policy to an individual policy, but those conversions are often expensive.

So what should you do?

If your employer-provided life insurance is a good policy and costs you nothing or next to nothing, it is likely a great deal. You would have that added coverage while you work there and pay very little for it.


It is important to note that you should consider having your own individual life insurance policy separate from your employer’s life insurance policy. Individual life insurance can be the most secure and help ensure that your loved ones are covered. Your employer-provided life insurance can be a nice bonus to that. Should you pass while still holding that coverage, it allows a little extra coverage, but you should not rely on it.

For the best advice for your individual needs and to explore your individual life insurance options, give us a call at 844-GANNONS to speak with one of our licensed agents today.