Why You Need More Life Insurance – Even if You Have It Through Your Job

AAA Mid States

When you go out to eat at a nice restaurant, do you prefer being able to pick out your meal or are you fine with the waiter bringing out whatever they have available at the moment?

If you have to buy a new car, do you trust the salesperson to bring you the model, mileage, color and features they recommend or would you rather have some say and get what you want?

When it comes to life insurance, you have that same choice. But one of the most common phrases we hear is: “I don’t need life insurance; I already have it through my job.” While life insurance through your employer is a fairly common and good idea, you should stop to ask yourself: “Is this policy meeting my needs?”

Individual Policies to the Rescue

The life insurance you may have through your employer is typically known as a group policy – generally, a single contract that covers a large group of people.

But with an individual policy, like those offered by AAA Life Insurance Co., you can get a policy that is tailored to meet your exact needs. Group insurance typically pays out one to two times your annual salary, but a rule of thumb is to shoot for at least seven times your annual salary.

Think about everything that life insurance can pay for: your mortgage, car loan, any additional debts, general living expenses, funeral and burial costs, future college expenses for your children, etc. It adds up quickly.

Keep in mind: if you change jobs or if you have plans to retire early, your coverage could end. When you sign up for an individual policy, you can pick the length to make sure you’re covered no matter what happens.

Why Not Both?

The coverage that may be offered by your employer is still a valuable benefit – it’s convenient, as you can often enroll without a medical exam. Combining a group and individual policy is a great way to maximize your benefits and coverage.


Your local AAA Insurance Agent can help determine how much life insurance coverage you need. Call 1-800-222-1469 for a complimentary life-needs analysis.