Employers are usually the providers of most people’s first life insurance policy. And generally this will occur before more complicated factors exist in one’s life that can affect policy needs. Usually a parent or sibling is the first person that is listed as one’s chosen beneficiary on the policy and standard payout of $25,000 to $50,000 is common.
For a person who is just entering the work force and beginning their career the policy amount provided in their employer sponsored insurance is generally a nominal amount and is not intended to provide for the financial needs of an entire family in the event of the death of the insured. These policies will typically cover the funeral and burial costs for the individual with a certain amount of leftover. And at the beginning of one’s career, this is typically all the insurance they will need.
As their lives continue to develop and an individual falls in love and becomes married their insurance needs will likely change immediately. A spouse will typically be added to your health insurance policy and will also replace the previously designated beneficiary on your life insurance policy. As your family grows and children enter the picture insurance needs change once again and it is generally at this time that people start to look outside of their employment sponsored package and seek a larger term life insurance policy.
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Great post. This is right on but it is important to remember that not all employers (even ones that provide health insurance) have life insurance attached to the plan. Many carriers have the “option available” if the employer chooses to add it, usually anywhere from $10,000-50,000 although I have seen more.
There are many different sites available to get term life quotes. Most of these sites require you to give up your privacy (phone, email, name) to simply look at the actual term life insurance quotes you want to see. Although it’s important to get insurance right away if it is needed, nobody want’s an agent or someone calling them constantly all day long when all they wanted to do was to look at prices! Here is a great site to check out for fast, private Term Life Insurance quotes.