If your employer provides life insurance, you may feel like you have already checked an important item off your financial to-do list.
You enrolled in the benefit. You named a beneficiary. You see "life insurance" listed alongside your health and retirement benefits. So, you are covered.
But are you covered enough?
That is a question many people may not think to ask. According to LIMRA, a global insurance and financial services research and trade organization, 57% of adults who have life insurance only through their employer believe the amount they receive through work provides enough coverage. Yet the average basic workplace benefit is either a flat $20,000 or one times an employee's salary. LIMRA also found that 49% of households relying only on workplace life insurance say their families would begin to struggle financially within six months if a wage earner died unexpectedly.
The broader life insurance picture tells a similar story. The 2026 Insurance Barometer Study from LIMRA and Life Happens found that 52% of American adults own life insurance. Another 29% do not have coverage but say they need it, while 9% of people who have life insurance believe they need more.
September is Life Insurance Awareness Month, which makes it a good time to look more closely at your workplace benefits. Employer-provided life insurance can be a valuable part of your financial protection. The key is knowing exactly what you have, what your family might need, and whether there is a gap between the two.
Here are seven questions to help you find out.
1. How much life insurance does my employer actually provide?
Start with your benefits information.
Some employers provide a basic amount of group life insurance at no cost to the employee. Others offer employees the opportunity to purchase additional, or supplemental, life insurance through payroll deductions.
Your coverage might be a specific dollar amount, such as $25,000 or $50,000. It might be based on your salary, such as one or two times your annual income. There may also be different options for spouses and dependents.
Do not assume you know the amount simply because you remember enrolling.
Log in to your benefits portal, check your most recent benefits statement, or talk with your human resources department. Find out how much basic life insurance you have, how much supplemental coverage you selected, and whether the benefit changes when your salary changes.
Also check whether your employer's plan includes accidental death and dismemberment coverage. That is not the same thing as traditional life insurance, so it is important to know which benefits you actually have.
Knowing that you have workplace life insurance is the starting point. Knowing the amount and how the benefit works is what allows you to decide whether it is enough.
2. Would that amount cover what my family would actually need?
This is where the conversation becomes personal.
One times your salary may sound like a significant amount when you see the number on paper. But consider how quickly your family might need to use it.
If your income suddenly disappeared, what expenses would continue?
Think about your mortgage or rent, everyday living expenses, credit card balances, car loans, childcare, college costs, funeral expenses, and other debts. If your family relies heavily on your income, consider how many years of that income might need to be replaced.
Your circumstances matter, too.
A parent with young children, a mortgage, and many working years ahead may have very different life insurance needs than someone approaching retirement with grown children, substantial savings, and a paid-off home.
There is no single amount that is right for everyone. At Wichert Insurance, we emphasize that life insurance needs are unique and can change as your personal and financial circumstances change. Purchasing a home, having a child, starting a business, caring for a parent, planning for education, and approaching retirement are just some of the changes that can affect your needs.
Don't just ask yourself, "How much life insurance do I have?"
Ask, "What would the people who depend on me actually need?"
3. What happens to my life insurance if I leave my job?
This is one of the biggest differences between workplace life insurance and an individual life insurance policy.
Your group life insurance is connected to your employment. If you change jobs, retire, are laid off, or otherwise leave your employer, your coverage may end or change.
That can be easy to overlook, particularly if you have been with the same employer for many years.
Think about how much can change during a career. You might accept a better opportunity at another company. Your employer could restructure. You could decide to start your own business. You may retire earlier than expected.
If your workplace policy is your family's primary life insurance protection, a career change can become an insurance change, too.
Before relying heavily on employer coverage, ask your benefits department exactly what happens when employment ends and what deadlines apply.
4. Can I take my workplace life insurance with me or convert it?
Sometimes. But this is an area where you need to read the details of your particular plan.
Certain group life insurance plans may offer portability or conversion options when an employee leaves. Those terms are not interchangeable, and the options, eligibility requirements, deadlines, coverage amounts, and costs depend on the specific policy.
A conversion option may allow you to change eligible group coverage into an individual policy without going through the same process required to apply for a new policy. Other plans may offer a way to continue certain coverage after employment ends.
Don't assume that your current workplace coverage will automatically follow you to your next job.
Ask about these provisions while you are still employed, particularly if you are considering a job change or retirement.
It can also be helpful to compare those options with purchasing an individual policy while you are still working. Health, age, coverage needs, policy features, and cost can all affect the choices available to you.
5. Does my spouse or partner need life insurance, too?
When families think about life insurance, they often start with the person earning the larger paycheck.
That makes sense, but income is not the only thing worth protecting.
Suppose one spouse works part-time or stays home with children. Consider the financial value of everything that person does. Childcare, transportation, household management, meal preparation, and caregiving would still need to happen if that person were gone. Some of those responsibilities could suddenly become significant expenses.
A spouse or partner may also have income, debt, or other financial obligations that affect the household.
Check whether your employer offers dependent life insurance, but don't automatically assume the amount offered is enough. Just as with your own workplace coverage, compare the benefit with the financial impact your household would actually experience.
Life insurance planning should look at the family as a whole, not only the largest salary.
6. Would an individual life insurance policy make sense in addition to work coverage?
This is where "group life insurance vs. individual life insurance" can be a misleading way to frame the decision.
For many families, it does not have to be one or the other.
Employer-sponsored life insurance can provide an affordable and convenient foundation. An individual policy can potentially supplement that benefit and provide coverage you own independently of your employer.
For example, suppose you determine your family needs $750,000 of life insurance and your workplace benefit provides $100,000. Rather than ignoring the employer benefit, you might consider whether an individual policy could address some or all of the remaining need.
Individual life insurance also offers choices beyond the structure of your workplace plan.
Wichert works with term life insurance, as well as permanent options such as whole and universal life insurance. Term insurance provides protection for a specified period, while permanent life insurance is designed for longer-term coverage and may include cash-value features, depending on the policy.
The right choice depends on what you are trying to accomplish, how long you need protection, your budget, your health, and your overall financial situation.
7. Are my beneficiaries still the people I want to receive the benefit?
Even if the coverage amount is right, there is another detail that deserves attention.
Your beneficiaries.
Think back to when you first enrolled in your employer's life insurance plan. Was it five years ago? Ten? Longer?
A lot may have changed since then.
Marriage, divorce, births, deaths, and changing family circumstances are all reasons to revisit beneficiary designations. You should also check any contingent beneficiaries named on your policy.
Do not assume that updating a will or another financial document automatically updates your life insurance beneficiary. Your workplace life insurance and any individual policies should each be reviewed separately.
It takes only a few minutes to check, and it may prevent significant confusion for your family later.
Workplace Life Insurance Is a Benefit. Make Sure It Is Also a Plan.
Life insurance provided through work can be a valuable benefit, and if your employer offers coverage, it is worth understanding and considering.
The mistake is assuming that enrolling is the end of the life insurance conversation.
Your employer chose the benefits plan. Your family's financial needs are uniquely yours.
That is why Life Insurance Awareness Month is a good time to review the coverage you already have before automatically deciding you need more or assuming you are all set.
Start with your workplace benefits. Find out the amount. Understand what happens if you leave your job. Check your beneficiaries. Then look at the bigger picture of what the people who depend on you would actually need.
As an independent insurance agency, Wichert Insurance can help you evaluate your existing life insurance and explore individual coverage options from multiple insurance companies. Our approach is based on finding coverage that fits each client's personal and financial needs, with the understanding that those needs can change over time.