What you actually have through work
According to the U.S. Bureau of Labor Statistics’ employee benefits data, roughly 6 in 10 private-industry workers have access to life insurance through their employer — so if you have it, you’re in good company. It’s typically group term coverage: the employer picks the plan, often pays for it, and enrollment is automatic or close to it.
That’s a genuinely good benefit. The coverage I see through work is most often one to two times salary — sometimes a flat amount like $50,000. Free protection is free protection, and I never tell a family to give it up.
The two catches
Catch one is the amount. Two times your salary sounds substantial until you put it next to what your family would actually need — the mortgage, the years of income you provide, kids’ needs down the road. For most working parents, the work policy covers a season, not a family. (If you want the sizing math, I walk through it plainly in the “how much do I need” guide.)
Catch two is ownership. You don’t own that policy — your employer does. Change jobs, get laid off, retire, or see the benefit change at renewal, and the coverage is gone or shrinks, usually right as you’re older than when you started. Some plans offer a conversion window, but it’s short and often expensive.
Side by side
Here’s the honest comparison between the two:
| Life insurance through work | A policy you own | |
|---|---|---|
| Who chooses the amount | Your employer | You — sized to your mortgage, income, and family |
| Typical size | Often 1–2× salary | Whatever your family actually needs |
| If you change jobs | Usually ends or shrinks | Goes with you — it’s yours |
| Your health | Re-qualify later if you lose it | Locked in while you’re young and healthy |
| Living Benefits | Sometimes, often limited | Available on many modern policies — and checked |
| Cost | Often free or payroll-deducted | Often less than families expect at younger ages |
Why “free” coverage can still cost your family
The risk isn’t the work policy itself — it’s the false sense of “handled.” A family that believes the box is checked stops thinking about it. Then a job change lands at 45 instead of 30, the work coverage is gone, and the replacement policy is priced on a 45-year-old’s age and health instead of a 30-year-old’s.
Locking in your own policy while you’re young and healthy is the quiet win here. Your health today is an asset — a policy you own turns it into protection no employer decision can take away.
The plan: keep both
This isn’t either-or. Keep every dollar of free coverage work gives you — it’s a bonus layer. Then own the foundation yourself: a policy sized to your actual family, with Living Benefits checked, that follows you through every job you’ll ever have.
A free illustration shows what that foundation looks like for your age and budget. From there, the work benefit becomes what it was always meant to be — extra, not everything.
Illustrative example — your number depends on your age, health, and the coverage you choose. An illustration is an estimate to guide you, not a guaranteed final price.
About the author
Ken Kaneversky is a licensed independent insurance agent (NPN #22128544) in St. George, Utah — a U.S. Army veteran and cancer survivor licensed in 10 states: UT, IN, NV, ID, WY, SD, HI, CA, AK, and TX. He works with A-rated carriers and gives every family the same thing: a personalized illustration, not a sales pitch. Read Ken’s story