"I have life insurance with my employer..."

Often times, insurance agents and brokers hear, "I have coverage, or a policy, through my employer." And, I am quite sure that these people are telling the truth and 100% accurate. It is what they do not know, I am troubled about.

The first cause for concern is, does he or she have enough coverage? Industry research points to top policies at employers totaling around $50,000 and I can assure you, that is not enough. The average employer is far below the $50,000 and that is definitely not enough. Many will say, this is a way an insurance salesperson is trying to get you to buy a policy.

For some agents and brokers, this is another opportunity to 'push a policy' or 'make a sale!' But for professionals, employer-provided life insurance policies cause a great deal of confusion in the average person's thought process, when it comes to having adequate amounts of life insurance for necessary estate planning or planning in general.

Estimates in the insurance industry estimate between 7-10 times the person's salary. For us, it is hard to put a number into an equation without knowing the whole story. That is why an evaluation, consultation, and thorough review is completely necessary. Often times, 7-10 times the salary is sufficient, but each plan and person is different.

Everyone is unique, and their planning is just as unique! Many people do not realize the parameters and rules of the employer-provided policy change, after he or she leaves, either from retirement, to take another job, or termination. If we assume the average employer is no greater than $50,000, we could also assume that final expenses alone would exhaust most of the available death benefit, when it is needed most.

And, if $50,000 death benefit has been mostly exhausted when needed most, what does that leave for the family and dependents? The answer is, very little death benefit remains after the final expenses, and for those that say, "I have life insurance with my employer," it is a harsh reminder that obtaining another $100,000 in 2019, it super easy and can be inexpensive.

Oh by the way, I never recommend to leave your insurance planning in the hands of a corporation, that is focused on profits. In 2019, companies are cutting costs anyway imaginable. True, companies are offering more lucrative benefit packages to attract new talent, more qualified employees. But never underestimate an entity, that sole purpose to generate revenue, at the lowest cost.

Peace of mind is well worth pennies on the dollar! Pennies on the dollar is the equation between what a consumer pays for a policy, in return for death benefit from a policy. Hard to place a dollar figure on peace of mind.