There is a saying that we strongly believe in here in the insurance world. It’s “Plan for the worst and hope for the best.” While you’re always hoping that things will go smoothly, insurance policies like home insurance, life insurance, and business insurance help to ensure that you are protected if things get a little bumpy.
Life insurance may be the best example of this – while you probably don’t expect to leave this world anytime soon, a Massachusetts life insurance policy will ensure that your family is financially protected… just in case.
Once you are ready to purchase a life insurance policy, you have a few options: some employers offer life insurance policies to their employees. Otherwise, you can purchase a policy from an insurance agency directly. So which option is right for you? Read on to find out about your life insurance options:
How much life insurance is enough?
Every family’s life insurance needs are different. While a life insurance professional can work with you to determine your unique needs, it is possible to take an educated guess at how much life insurance you should have with one simple computation: a middle aged person with a spouse and children should have a life insurance policy worth about ten times their annual salary. This should be adjusted based on the age of each family member, whether the other spouse works, and other factors.
Unfortunately, employer-sponsored life insurance policies don’t tend to offer this amount of coverage. In fact, most employers only offer anywhere from six months to six years of annual salary in their life insurance policies. This means that your employer-sponsored life insurance policy may be a good start (especially if the coverage is free), but you should probably have another supplemental life insurance policy in order to guarantee enough coverage.
The drawbacks of employer-sponsored coverage
Having some extra coverage through your employer is great, but make sure that you read through the fine print of the life insurance policy that they offer. Sometimes, the restrictions on these policies are numerous, making them very difficult to use should the need arise. It is also worth noting that should you leave the job, your coverage will expire, which could leave you temporarily vulnerable.
What’s the bottom line?
For a person with grown children and no mortgage or outstanding debt, an employer-sponsored life insurance policy may be enough. For people with children, a mortgage, loans, or other financial burdens, a supplemental life insurance policy may be worth exploring to ensure full protection.
Getting a supplemental life insurance policy
If you’re beginning to think that your employer-sponsored life insurance policy isn’t enough to protect your loved ones, just give Vargas and Vargas Insurance Agency a call at 617-298-0655. We can get you a quote for a life insurance policy to ensure that your loved ones will be financially protected in the worst case scenario. And remember – Vargas and Vargas Insurance is always here when you have something to protect, so call us or visit one of our offices whenever you need some help with your insurance.
