Many folks assume their employer-provided life insurance is enough, but is it really? For example, if you earn $70K and your coverage is set at 2x your salary, that's $140K—far less than what’s needed when you factor in funeral costs, outstanding bills, and mortgage payments. That money can disappear quickly. The general guideline is to have 10–12 times your income in coverage to help cover debts, childcare, and the loss of earnings over the years.
It’s also important to remember: workplace life insurance is tied to your job. If you leave, retire, or face layoffs, that protection often ends, and getting new coverage later can be more expensive or even out of reach. Even supplemental plans through work can have the same portability issues, with rates that jump every five years.
A smart move? Calculate your actual need by subtracting what you already have from that 10–12x income target. For a healthy 30-year-old, locking in $500K of 20-year term can cost as little as $25–$30 a month.
At PineCrest Insurance LLC here in Colorado, I believe in making sure your coverage fits your real needs—not just what’s easiest. If you’re thinking about how to secure your family’s future, it’s worth considering all your options.
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