If you’re like many Americans, the answer is “yes!” That’s because a significant portion of adults only have life insurance through work. But if you have a mortgage, children, parents, or family members who rely on you, or have taken on additional financial obligations, life insurance through work should be considered as just a start.
In many cases, employer life benefits range from as little as one year’s salary up to twice your average salary.1 Compare that to advice from experts who say that “married people especially those with children or significant debts” should have life insurance that equals about five to 12 times your income.1 As a result, keeping all your “life” eggs in the employer benefit basket can leave your loved ones facing the potential of a significant gap if anything happened to you.
How would that gap impact your family? If the question makes you worry, you’re not alone. According to approximately two out of five American families, they’d have trouble making ends meet within six months if the family’s main breadwinner passed away.2
Perhaps that’s the reason 40 percent of our nation’s workers with employer life insurance say they need to add more insurance than they currently have through their basic benefit package from work.3 Setting up additional coverage on your own brings two important advantages:
1) You—and your family—can sleep easier knowing you’ve taken steps to close the gap between life benefits from work and the amount of life benefits your family may actually need.
2) If you switch jobs, you won’t need to worry about replacing life coverage at a time when you may be older, health problems may have developed, and getting the insurance you need may be more difficult.
As an AOPA member and a pilot, you have the opportunity to close the gap between any coverage you may have at work and the level of benefits your family needs. The AOPA Group Term Life Plan gives you the ability to apply for up to $1 million in coverage—with no general aviation exclusions to worry about. This is important because some traditional life insurance plans (perhaps even the coverage from your employer) exclude benefits if you pass away while flying as a general aviation pilot. Under those plans, your family could be left facing an uncertain future with no life insurance benefits to rely upon.
The AOPA Group Term Life Insurance Plan, on the other hand, delivers exceptional value by fully covering you—in the air and on the ground. It’s an important distinction to keep in mind when you’re thinking of expanding your life insurance safety net.
For more information on the AOPA Term Life Insurance Plan, call 844/304-(AOPA) 2672 or visit us online at aopainsurance.org/termlife.
1 “Why Life Insurance Through Your Work Likely Isn’t Enough,” nasdaq.com, 2/16/17
2 “2015 Insurance Barometer Study Finds Americans Continue to Overestimate Cost of Life Insurance”, LIMRA, 4/14/15
3 “Got Life insurance through work? Here are 2 reasons why that’s not enough”, Bankrate.com/1/26/16
Group Term Life Insurance underwritten by ReliaStar Life Insurance Company
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