You should have an individually owned life insurance policy. Relying on an employer paid policy can be risky. Here’s why:
Many employer paid for plans only provide 1-2 times your annual salary as the death benefit. This is never enough to take care of your loved ones. How much do you need? Life Happens, A non-profit organization, provides some excellent information to help in determining how much you should have. Read more here.
May be taxable
Because some or all of the life insurance benefits from work are paid for by the employer pre-tax the benefits may be taxable. The IRS has some clear rules on this. Group-Term Life Insurance Tax Consequences.
Similar to other benefits, if you leave the company you can’t take the life insurance with you. The position with your new company may not come with group life insurance. The avg employee only stays at the same business for 4.4 years. Typically, group life is only available from a large employer. With 50% of the working population employed by a small business life insurance may not be available at your new company.