Is my employer life insurance enough?
That depends on how much you’re covered for and how much you think your dependents will need if the worst ever happened. The average salary in the UK at the end of the 2015 tax year was £27,600, if your employer pays out death in service at four times your earnings – that’s £110,400 – is that enough?
Think about what the money will be used for – will it pay off your mortgage or cover any debts you have? And if the kids are still young and you bring home the main income, will your employer life insurance be enough to support your family with childcare and household bills? – Once you’ve added it all up, you might be surprised at just how much you need.
If you find your employer insurance comes up short, you can take out a separate policy to make up the additional amount. Just remember not to double count! e.g if you need £400,000 and your employer covers £200,000 just take out an additional £200,000 in cover.