Suze Orman TwitterSuze Orman FacebookSuze Orman YouTubeSuze Orman LinkedIn
View Blog & News List

Why Employer-Provided Life Insurance is Dangerous

October 15, 2015 at 12:00 AM

One of the most dangerous mistakes you can make is to rely on the life insurance your employer offers up as benefit. Here’s why:

1. It’s not enough! Most employers set the death benefit at one or two times your annual salary. As I have made clear in my Life Insurance Made Easy blog post, to truly protect your loved ones you need a policy with a death benefit that is 20 to 25 times the annual income needs of your dependents. I don’t think an employer payout of 1 to 2 times your salary is going to cut it. Do you?

2. You can’t take it with you. Employer-provided life insurance is only good for as long as you stay with that employer. Get laid off or switch jobs and you are suddenly without life insurance. Even if your next employer offers the benefit, we just covered that it’s unlikely to be all that you need to protect yourself. And what if at the point that you leave a job you aren’t in the greatest health? If you look to buy your own life insurance at that point, your premiums are going to be higher than if you had bought the insurance years ago when you were healthy.

The bottom line is that if you need life insurance, you are far better off shopping for it on your own. You want a policy that lasts as long as you need it, not only as long as you keep your current job. At selectquote.com you can learn about term insurance, and start the process of protecting your loved ones.

Tag Cloud

contribute household expenses women longer life spanlong term careeliminate credit card debtBankhigher monthly paymentdon't do five year car loanpercentage of women widowed 75-84public service loan forgiveness programapproved medical 100% tax-freemortgage brokerplandon't extend mortgage Foreclosurekeep a scheduleautomatic withdraw to savings initial tax break universal college accessalways use all paid time offno negativityallowancevalue moneyFHA loan feesincentives for health care wellness screeningleave a legacyshorter payback periodlong-term care premiumsadjust allocations eight month living expense earn more on savingsterm life insuranceDurable Power of Attorney for Health Carepay off debtcommunity collegecredit unionTeachHDHP's are not badresponsible with moneydangerous money seasonlousy investmentpowerfulPost-Divorcefederal student loan deferment retirment savingsiffy incomeSpendingteach importance of helping others3 bucket approachrefinanceThe Suze Orman ShowAlarm Clockdeath benefit needs for familybe true to yourselfFundsUS Tax Codelow down payment15-year refinance dealspring summer full retirement agechildren's bookpoint cost offset by savingscomparison shoppingpreexisting condition not coveredCNBCmonthly benefit Most Influential Celebrities ListstudentRetirement SavingsPay Off Debt Before Retirementone credit cardlow-cost index mutual fundanticipated salarychildren under 18Auto Savings closing feeslower rate50 over 502016 adjust withholdingMoneyFinal GoodbyeStudent Debt Crisispublic service career student loan repayment no sneaking in feesUrbana-Champaignautomate student loan paymentssave Holiday Shoppingreal estate mistakesreduce withholdingCommunication Skills automatic paymentloan is giftPhyllis Shelton expert long-term carepeace of mindVeterinary Schoolheartachejuggle multiple financial goalsescrowWarner Bros Television Groupbreakdown projected monthly housing costFinancialclosing costs 2% of loancost of capitalization calculatorunsubsidized Stafford loanderailed planEric Dodge Goodbyebe good example2015 financial roadmaprequired disclosurewaive home inspection bidvalentines dayBankruptcycharges on credit cardbalance transfer student loan repayment plan30 year mortgage student loan debtcar leasing3 step financial road maphousing marketRevocable Trustdon't ignore open enrollmentprotect dependent would you decline a bonusbetter loan dealshome buying seasonface your financial fearterm insurancestandard rateAARP Social security calculatortitle insuranceHDHP's are good for youmake saving a pleasurefinancial goal phraseinsurancehigh premiumsChanging Livesmental healthfamily save at least $100 monthlyEasy Life Insurance staycation401(k) Contributionsget over life insurance phobiaCivil RightsSuze Orman ScholarshipStudent Loan20 year level term credit managementraise deductiblesis it true? file asapaffordable premiumunder 18 financial giftno private loanspecial saving accountbuy home you can affordmarriage inequalityignore 6 month grace period gift not loanpay down car loaninsurance mistake401Kdental insurance at worst still pay 75% benefitCollege of Veterinary Medicineannual cost of living adjustmentborrowing plan Suze Orman's Money Warshome insuranceLovebetter termsadd teenUniversity of FloridaAccuQuote.comFinancial Gift Cliffis it kind?co-sign women outlive mensmall changes cut monthly cable billshop online guaranteed level term policysame sex marriage band end Floridadon't use allowance as bribereduce monthly paymentbecome member switch to spouse coverageburn outbudget740 credit scorealternative FICO scorestrained relationshipno splurge loan no longer than 36monthsfinancial aidsuccesspresident Obama3% debt transferred get credit cardGay Couplesfinancial fearshealthy retirement weightWillfinancing car focus on new truth social securityCombo Insurance Productssetup automatic savings withdrawbill paying prioritiesFinancial Power of Attorneylower interest rateonly refinance if it pays15 year mortgagecar loanFinancial Systemonly offered while employed One Wallet At A Timeoverspend on dining outtraditional vs roth 401(k)student loan repaymentlower overall drug costFICO credit score credit card mortgage20% down payment avoid feesraising mortgage rates verify retirement plan with HR or plan sponsorrequire chore in exchange for allowanceARMstore credit cardsschool do you need life insurancebest loan deal one annual feehealthy gums2015 record year car salesdoctor no longer in networkSave Us Moneynot gender specific GiftPBS SpecialConventional loan PMI10 year repayment plan Minor Children Suze approved20% down paymentFederal ReserveconfidentcommitFRAhome loan credit score below 740 Suze is my biggest mentorteens and moneyhealthy retirement blood pressureSwap Older Annuities or Life Insurance healthy younegotiate points with bank or sellerHDHP credit reportno apologymobile appultimate compounding giftcredit cardemployer offered life insurancepaid vacationFiscal Responsibilityfraudulent return8 Rulesprotect and provide for minor child raise insurance deductibleno private loansinterest on student loansletter to suzeavoid burn outraising interest ratesmanage student loansTelepictureszero rate transfer dealstelevision hostwomen long term carefinancial concerndo not pay allowance for good behaviorSelfishconsider roth 401(k)AARPearn allowancecompare monthly expensesSuze OrmanFinancial Awareness Video Festivalpush yourself to save more for retirementMass Mutualsecured cardaffordabilitycontribution employer funding HSAFinancial CliffLTC shoppingSchool of Social Workdon't derail retirement savingsEmergency Savingsage appropriate chorelowest cost fund optionlong term goalpay credit debt ASAP19 years cash flow problemFinancial Awarenesshome related tax break bonus life insurancedebit cardpaying for collegerent vs buycar buying mistakesMoney-Savinglive below your meansFICO Scoreemergency fund savingsHolidaysave moneyspeak new goalpercentage men widowed 75-84Amy Lacyetbuying car 2016!00% tuition paidsecure creditFree Debt Eliminatorgrandchild summer job IRA contributionOverspendingstandard deduction Personal Financeretirement planno fee transferbuy down college studentNew York Lifereplace permanent life insurance with termpay more than minimumFederal Stafford loantaxesbest interest ratesreduce interest ratetax ID theftStudent DebtCommencementteensbuy homeclosing disclosureritual schedulesavings pleasureJose Rodriguezdon't buy wantsInfluential Celebritygift up to 14,000FICO at least 720Inflation Benefittax refund fraudconfident of solutionSandy Hook Promisemultiple lenderswrite new goalNew american Dream student loan repayment estimatorunexpected expenseverify wellness screening and programsHigh Credit Score2016 adjust estimated taxpay down student loan debtGracecan you afford itVital Documentskid borrow firstnew carhighest possible benefitcostly insurance mistakecalculate dependents annual income needssocial security not going brokeholiday spendinglet them have 50% controlage appropriate goalscut monthly cellular billdream schoolkids schedule paymentsLong Term Care shoppingschedule vacationlife insurance name trust as beneficiarymeet monthly january billsRoth 401(k)social security never insolventstay positiveaccelerate dental workreferrals Gay Rightsthree year car loandon't cover cosmetic dentistryPrime Rate Rise 2015LTCSandy Hook Elementary Schoolsame-sex marriageAmericans don't use all paid vacation timemonthly dental insurance premiumhome buying budgetmax employer matched 401(k) contributionincrease retirement savingsMoney MarketCredit Card Interest Rateback-to-school budgetoverspend on nights outrepay student loansinsurance yearly reviewlower premiumLong Term Care premiumsbuying a cardon't blow tax refundcredit utilization rate20% equitypremiumExhibitionprotect loved ones Ashley SpringerRetirement Incomeget the most out of social security 2017 TaxesSuze Orman spouse Kathy Travisincrease retirement contribution rateWashingtonHDHP/HSArising home pricesdebt freedon't charge a pennyproperty taxprescription tierForbes Top 10High FICO Score = Better Rateget health insuranceno life insurance financially irresponsibleHoliday Seasonmarriage financial responsibilityretirementresponsibleopen enrollment review Forbesgift grandchild IRA contributionswitch to roth 401(k)couple financesYoung Adult Baby Boomersworst financial mistakeETF'sLong Term Care Insurance interest capitalizationretirement accountsdon't spend quick closinggraduationcompare provider pricingyours, mine & oursis it necessaryCPI-WARM Cautionphysical healthno waiting periodsocial work10% donate to charityfile taxes quicklyAdequate Auto and Home InsurancesavingsStock Investmentsno tax on withdrawlsdoctors in networkhigh deductible health care planitemized deduction8 month safety netsidelinedLifestylemortgage interest tax deductionmoney-aware childCory Bookerhealthy aging Legal Guardianidentity theft8 month emergency fundenjoy saving financial independencelow mileage discountroth iralong-term care loan necessitycollege graduateNewtownbig results dental savings planadvice for college graduatesno interestdepreciating asset Credit scoreprovider of financial supportlearn good financial choicesback door Roth IRAknow before you owesummer job match income Citi Simplicity Card 40% toward financial goalfinancial argumentsovercome financial fearsRichMortgage Credit Availability Indexpermanent life insurancecreate new truthhome ownershipLTCi ASAPCD'sloved ones dependent on incomebad decisionshealthy teethdon't defer interest paymentsCredit Card Rate Increasecnbc alarm clockincreased auto insurance premiummax benefit coveredno late fee SelectQuote.comdental discount plandeath benefit 20 to 25 times annual incomehigher insurance deductiblepaid in fullBill and Pennydear suzeFixed Rate MortgageMarlo Thomastoo expensive schoolworkaholichigh down paymentmortgageBeautypositiveborrow each year, capitalization is going to pile up take actionInterestFinancial Advicedangerous retirement planWall Streetmaintain standard of livingmoney vowsreal estate marketmortgage disclosurehome buying mistakesRevocable Living Trustloan big picture Heartraise your deductibleexercise reguarlygay marriage ban end Florida near historic lowsis it necessary?University of Illinoisemotional stakesGiftsnon conventional routehome budget after tax costIRA contribution gifted moneyprotect your familycommunity bankMotherFinancial Solutions For Younot enough life insurancebetter loan ratesHSA tax savings4 Must Have Documents refundretain separate credit cardswomen live longerDeath Benefitoverspend on giftsincrease emergency savingsbad retirement planningbe kind to yourselfEmployer Matched Contributionidentity fraudFederal Funds RateHDHP'sno retirement funds for down paymentlower mortgage interestteach your child good money habitsStaffords this year have a fixed 6.8% interest ratepay 100% cashfour steps to retirement savings Must Have Documentsfocus on needsgrandparent IRA contribution emergency fund adult childrenInfluentialsCOLAhigh FICO score3 savings buckets origination feespay interest while in school20 to 25 times annual incomeInvest for savings growthSuze changed my lifestretch out haircut appointmentsFinancial Educatorlow credit scoreallowance taskpay high rate off firstSatisfyingFederal PLUS loandebthigh credit score discountwives should be involved in retirement6 month waiting periodcostly legal max employee matchPrime Rate Increasepurely financial standpointrollovershort term goal How To Build Credit


View Blog & News List
People First. Then Money. Then Things.
Connect with me on Facebook Connect with me on YouTube Connect with me on Twitter
© 2017 Suze Orman Media Inc. All rights reserved.
 
 |  Search  |  Sitemap  |  Privacy  |  Terms
Sign Up For E-mail Offers
Open Panel
Close Panel