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 you can learn about term insurance, and start the process of protecting your loved ones.

Tag Cloud

spring summer Sandy Hook PromiseWarner Bros Television Groupsame-sex marriageultimate compounding giftallowance taskFederal Funds Ratestudent loan debtFinancial SystemRevocable Living TrustVeterinary Schoolrequire chore in exchange for allowancestaycationprotect dependent Holidayignore 6 month grace period healthy retirement blood pressureFinancial Gift CliffRichHigh Credit Scorebuy home you can afford8 month safety net19 years cash flow problempay credit debt ASAPUS Tax CodeAuto Savings reduce withholdingmax employee matchPrime Rate Rise 2015is it necessaryhousing marketHDHP'sPrime Rate IncreaseARMcompare provider pricingdon't blow tax refundLTCUniversity of Illinoiscar buying mistakesmarriage financial responsibilitypurely financial standpointfull retirement ageoverspend on dining outHoliday ShoppingHoliday Season2016 adjust estimated taxdon't derail retirement savingsidentity theftloved ones dependent on incomecnbc alarm clockvalentines daygift grandchild IRA contributionAARP10 year repayment plan 15-year refinance dealco-sign add teenstudent loan repayment planunexpected expensedental discount plantax ID theftFHA loan feesBeautyitemized deductiondon't cover cosmetic dentistryeight month living expense 401(k) Contributionsstudentprotect and provide for minor child contribution no retirement funds for down paymentfocus on new truth don't defer interest paymentshigh credit score discounthome loan credit score below 740 term life insuranceproperty taxno waiting period2015 financial roadmapsave depreciating asset don't charge a pennyis it kind?family save at least $100 monthlyrefinancelower mortgage interestFiscal Responsibilitycontribute household expenses high deductible health care planquick closingallowanceNew York Lifeno negativitywrite new goalcredit managementhome buying mistakesfinancial fearslousy investmentraise your deductible50 over 50home buying budgetpay high rate off first15 year mortgagebuying car 2016get health insuranceEmergency SavingsCommencementholiday spendingFICO at least 720file taxes quicklyfour steps to retirement savings paid in fulldon't extend mortgage Retirement SavingsSelfishbudgetiffy income401Kdental savings planWall Street20 year level term SelectQuote.comTelepicturesSandy Hook Elementary Schooltake actionhome insurancepermanent life insuranceautomatic paymentoverspend on giftsmarriage inequalityNew american Dream january billsget the most out of social security Revocable Trustis it true? Giftsdon't do five year car loancredit reportlive below your meansrent vs buydo not pay allowance for good behaviordangerous money seasonletter to suzepublic service career student loan repayment president ObamaCPI-Wreplace permanent life insurance with termthree year car loangrandparent IRA contribution kid borrow firstpublic service loan forgiveness programbest loan deal women long term careclosing costs 2% of loancut monthly cellular billdoctors in networkSuze changed my lifestay positiveInterestreal estate mistakesMoneyGracesavingsFinancial Solutions For Youlong-term care premiumsNewtownpay down student loan debtmanage student loansAARP Social security calculatorsocial security never insolventcar leasingFICO credit score credit card mortgageno private loanstelevision hostsetup automatic savings withdrawForbesswitch to spouse coveragepremiummortgage interest tax deductionsummer job match income juggle multiple financial goalsschool Invest for savings growthrolloverpay more than minimumconfidentwomen longer life spanFederal Stafford loanpay off debtearn allowanceRoth 401(k)waive home inspection bidPost-DivorceCredit scorecan you afford itLifestyleadjust allocations Mortgage Credit Availability Indexspecial saving accountinsurance yearly reviewstudent loan repaymentMinor Children Easy Life Insurance 20% down payment avoid feesaffordabilityBankinterest capitalizationlowest cost fund optionteach your child good money habitsFinancial Advicealways use all paid time offprotect your familybill paying prioritiesmoney-aware childcollege graduateLTC shoppingSuze Orman's Money Wars2016 adjust withholdingGay Couplescar loancut monthly cable billexercise reguarlystore credit cardsSchool of Social Workface your financial fearreferrals high down paymentno interestdeath benefit needs for familysocial securityWashington3% debt transferred PBS SpecialLong Term Care premiumsEric Dodge lower rateOverspendingchildren's booklower premiumrequired disclosurenot enough life insurancecalculate dependents annual income needsfederal student loan deferment Long Term Care shoppingvalue money30 year mortgage under 18 financial giftCivil Rightsbreakdown projected monthly housing costhigh premiumsat worst still pay 75% benefitbalance transfer Must Have Documentsbuy homenear historic lowsGoodbyeraise insurance deductible4 Must Have Documents one credit cardteens and moneydebit cardoverspend on nights outPersonal Financelong term goalbad decisionspowerfulenjoy saving emotional stakescost of capitalization calculatormental healthhigher insurance deductiblelow mileage discountSave Us Moneypay interest while in schoolplanAmy LacyetGay RightsEmployer Matched Contributioncostly insurance mistakechildren under 18no apologylong term careraise deductiblesteensorigination feesFinancial Power of AttorneyFinancial Awarenesslow down paymentLegal Guardiando you need life insuranceJose RodriguezStaffords this year have a fixed 6.8% interest ratestandard raterepay student loansanticipated salaryHSA tax savingscomparison shoppingnon conventional routebig results Citi Simplicity Card better termsno tax on withdrawlsHeartgift not loansave moneyhome ownershipswitch to roth 401(k)unsubsidized Stafford loanTeachmax employer matched 401(k) contributionThe Suze Orman Showincrease retirement savingscompare monthly expenseskeep a scheduleinitial tax break ARM Cautionlife insuranceshop online guaranteed level term policyFinal Goodbyebest interest ratesloan big picture increase retirement contribution ratesavings pleasurebe good exampleis it necessary?successdoctor no longer in networkdon't ignore open enrollmentstandard deduction Satisfyingwomen outlive menConventional loan PMIreal estate marketMotherborrow each year, capitalization is going to pile up Exhibitionidentity fraudage appropriate choreemployer offered life insuranceHigh FICO Score = Better Rateworkaholicconfident of solutioncommunity banklower interest rateFederal PLUS loanForbes Top 10prescription tiercommunity collegecredit utilization ratepercentage men widowed 75-843 step financial road mapget over life insurance phobiaAmericans don't use all paid vacation timebecome member Student Loanroth iraFixed Rate Mortgageleave a legacyspeak new goalpeace of mindbuying a car!00% tuition paidCNBCRetirement IncomeLoveSuze Orman ScholarshipWilltoo expensive schoolIRA contribution gifted moneySuze is my biggest mentorCommunication Skills Cory Bookerbad retirement planningshorter payback periodFICO Score6 month waiting periodPay Off Debt Before Retirement3 savings buckets 8 Rulesretirement planCOLAVital Documentshealthy youUrbana-Champaign740 credit scoreemergency fund savingsFRAshort term goal 20 to 25 times annual incomeMoney MarketSuze Orman spouse Kathy Travistaxesdon't buy wantsMarlo Thomashome budget after tax costmax benefit coveredterm insurancesidelinedStock InvestmentsGiftretain separate credit cardsavoid burn outUniversity of Floridabe true to yourselfBaby Boomers2017 Taxeslow-cost index mutual fundno late fee title insurancemultiple lendersAshley Springerrising home pricessocial worknew carForeclosurepositive20% equitypay down car loandental insurance How To Build CreditBankruptcyteach importance of helping othersloan no longer than 36monthsInfluential Celebrityconsider roth 401(k)insuranceSuze approvedChanging Livesphysical healthcouple financeslet them have 50% controllow credit scoreapproved medical 100% tax-freeprovider of financial supportpaid vacationresponsible with moneyhome buying seasonburn outbetter loan rates40% toward financial goal2015 record year car salesOne Wallet At A Time20% down paymentgraduationretirment savingsYoung Adult know before you owecreate new truthclosing feesdeath benefit 20 to 25 times annual incomepoint cost offset by savingslife insurance name trust as beneficiaryuniversal college accessmortgagenot gender specific Financial Educatorzero rate transfer deals3 bucket approachno splurge be kind to yourselfCredit Card Rate Increaseworst financial mistakesecure creditclosing disclosureStudent Debtmonthly dental insurance premiumfinancial independenceescrow10% donate to charitykids schedule paymentsschedule vacationpay 100% cashtax refund fraudonly refinance if it paysloan is giftritual scheduleback door Roth IRAnegotiate points with bank or sellerovercome financial fearsInfluentialsFinancialcollege studentcredit unioncostly legal better loan dealsgift up to 14,000Spendingdear suzecharges on credit cardHDHP's are not baddream schoolemployer funding HSALong Term Care Insurance mortgage disclosurebuy down financial goal phrasestudent loan repayment estimatormobile appsame sex marriage band end Floridaincreased auto insurance premiumHDHP's are good for youlearn good financial choicesmonthly benefit responsibleFree Debt Eliminatorstretch out haircut appointmentslong-term care age appropriate goalslower overall drug costgay marriage ban end Florida push yourself to save more for retirementannual cost of living adjustmentopen enrollment review alternative FICO scoreincrease emergency savingsverify retirement plan with HR or plan sponsorget credit cardfraudulent returnhome related tax break bonus Financial Cliffrefundmoney vowsmortgage brokerfocus on needsretirement accountsprotect loved ones LTCi ASAPno sneaking in feesFundsSuze Ormanmaintain standard of livingHDHP/HSAderailed planautomatic withdraw to savings debtheartachesecured cardno life insurance financially irresponsibleverify wellness screening and programsHDHP yours, mine & oursretirementCredit Card Interest Ratefinancial concerndangerous retirement planpreexisting condition not coveredinterest on student loansStudent Debt Crisispercentage of women widowed 75-84no private loanfinancial argumentsonly offered while employed women live longerMoney-Savingstrained relationshipETF'sAlarm Clockhealthy retirement weightMass Mutualcredit cardmake saving a pleasureback-to-school budgetwould you decline a bonusinsurance mistakeautomate student loan paymentsCollege of Veterinary MedicinePhyllis Shelton expert long-term caregrandchild summer job IRA contributionpaying for collegeAdequate Auto and Home Insuranceborrowing plan healthy aging AccuQuote.comemergency fund Durable Power of Attorney for Health Caredon't spend no fee transferaffordable premiumreduce interest ratehigh FICO scoreBill and Pennyadvice for college graduatessocial security not going brokefile asapincentives for health care wellness screeningMost Influential Celebrities Listone annual feefinancial aidcommitsmall changes debt freefinancing car Financial Awareness Video Festivalwives should be involved in retirementtraditional vs roth 401(k)reduce monthly paymentdon't use allowance as bribeloan necessityhigher monthly paymentmeet monthly 8 month emergency fundhighest possible benefitadult children

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