Are You Underinsured?
Life Insurance
It’s easy to forget about life insurance once you have coverage.
Your life insurance needs can change significantly over time. Since life insurance helps provide vital financial security for your family should anything happen to you, it’s important to review your coverage to ensure it’s aligned with your current financial obligations and lifestyle.
Here are six signs that you may be underinsured:
- Your only coverage is through work. Employer-sponsored life insurance is a valuable benefit, but it’s generally limited. Benefits may cover 1-2 years of salary, but it’s likely not sufficient to cover significant debt or longer-term expenses. And if you leave your job, you’ll probably lose your coverage.
- Your income has grown. If you’ve been promoted or your business is flourishing, your lifestyle has probably evolved too. Chances are your loved ones have grown to depend on your additional income, so if your family’s life circumstances have changed, your coverage amount should too.
- You’ve started or expanded your family. The more people who depend on you financially, the more coverage you’ll need. If you’ve gotten married or started a family, your loved ones will be counting on you for years to come. And if you have plans for their futures like higher education or retirement, these costs must be factored into your life insurance needs.
Term Life Insurance for Every Life Stage
Choose from a selection of Group Term Life insurance plans for the protection your family needs.
- You’ve purchased a home. Housing costs are the largest annual expense for most families, so it’s important to make sure your coverage is enough to meet your outstanding mortgage balance (or balances if you’ve purchased a second home). It’s reassuring to know your family could remain in your home if something were to happen to you.
- Your stay-at-home partner isn’t insured. Think of all he or she does —childcare, house cleaning, meal prep, and more. Significant costs could be incurred if you had to pay someone else to assume these responsibilities. Life insurance proceeds can help cover those costs.
- You haven’t calculated your needs. If you picked an amount without calculating your needs, there’s a good chance you’re underinsured. Replacing income, paying the mortgage, covering care costs, and funding higher education can add up quickly. Rather than guessing, use our Life Insurance Needs Calculator to determine your actual needs.
It’s important to review your coverage annually. Even if you haven’t had a major life change, economic factors like inflation can seriously erode what was once an adequate cushion to cover the financial needs of your loved ones.
If you need additional life insurance, the Alumni Benefits program offers options for all life stages. If you already have coverage, learn how to apply for more.
1 “Raising a Child Can Cost More Than $30K Per Year in the U.S. – 2023 Study,” Smart Asset, https://smartasset.com/data-studies/cost-raise-child-2023. Accessed August 2024.
