Life insurance from your employer is a valued benefit for millions of American workers.

Employer life insurance is a form of group life insurance that’s offered to you and your coworkers. It’s typically a set dollar amount at smaller companies and a multiple of your salary at larger companies. The multiple is commonly one to three times your current salary.

The Benefits of Employer Life Insurance

It costs you nothing (or very little). A big upside to life insurance from your employer is that it’s usually free. And if there is a cost, it usually only amounts to a few dollars a month.

You don’t have to take a medical exam. Life insurance from your employer is typically offered to every employee regardless of his or her health status. This can be a big plus if you have any health conditions. A health condition can make it difficult to get a life insurance policy on your own.

It’s convenient. There’s no need to consider multiple quotes, schedule a medical exam, or do any other legwork. You usually only have to fill out a form or two and designate a beneficiary.

The Downsides of Employer Life Insurance

It often falls short of how much coverage you really need. Most people need much more than one, two or even three times their annual salary in coverage to secure their family’s financial future. In fact, insurance professionals recommend having 10 to 15 times your annual income in coverage. This is especially true if you have dependents and/or debt. For this reason, it’s best to assume that life insurance from your employer probably isn’t nearly enough.

Supplemental coverage can be more expensive than buying your own policy. You often have the option to buy additional coverage through your employer-based policy. While this can be a convenient option, it may cost more than if you worked with an insurance advisor or agent to buy your own life insurance policy.

Your options are limited. You usually don’t have the range of policy options you’d have if you worked with an insurance advisor or agent.

Your employer can drop it at any time. You lose your coverage as soon as your company decides to drop it. And that’s more common now that fewer companies are choosing to offer or retain their group life insurance these days.

It’s tied to your employment status. You also automatically lose your coverage if you switch jobs, retire or become laid off. When this happens, you would need to go out and buy your own coverage. That can be more difficult as you get older or if you developed a health condition.

You may not be able to convert your supplemental insurance. Not all employer life insurance policies let you convert your supplemental life policy when you leave the company. If you can convert the policy when you leave, expect to pay a rate increase.

Exploring Options Beyond Employer Life Insurance

The potential downsides of employer life insurance often outweigh the advantages. Out of all the disadvantages, the biggest one is mistakenly believing that life insurance from your employer provides enough coverage for you and your loved ones.

Make sure you have all the coverage you really need by working with an insurance advisor or agent. He or she can calculate how much coverage you really need. (You can also use our Life Insurance Needs Calculator to get a quick estimate.) An easy way to find a qualified insurance professional in your community is to use our Agent Locator.

Once you know how much coverage you need, it’s time to compare costs. Review quotes from your insurance advisor or agent alongside the supplemental insurance quote. Know that it may be worth it to pay more for your own portable, flexible policy that you own and control.

In closing, employer life insurance is a great starting point. But it almost never gives you enough protection. So take the time to figure how much coverage you really need and to consider getting your own policy.

As the parent of a toddler, with a baby on the way, I’m definitely in this camp. It’s deeply unsettling to ponder how this virus has cut short so many lives in the span of just a few months.

I can’t escape the reality that I’m not invincible and never really have been. Whether it’s an accident, a terminal illness or an infectious disease, untimely deaths happen and none of us are assured a long, healthy life.

That thought paralyzed me before I decided to take a proactive approach to things. The good news is that there are concrete actions you can take today to protect the ones you love and get some peace of mind during these challenging times. Here are four definitely worth doing.

1. Prepare your will. Not even half of Americans have a will, which is a legal document that spells out your wishes for where your assets go and who cares for any minor children in the event you pass away. If you die without a will, your individual state’s laws will decide where your money and belongings go and who takes care of your kids. As if that isn’t bad enough, dying without a will generally delays the process of resolving your estate and can subject it to additional taxes.

Spare your loved ones from this experience with a will. Many people use a lawyer to draw up a will, especially if they have large or complicated estates. These days, many lawyers can help you via email, phone and teleconference, so don’t let social distancing stop you from getting a will.

Another option is to create a will online. This is a fast and inexpensive option for anyone on a budget or with uncomplicated needs. A few popular resources include LegalZoom, Quicken WillMaker & Trust and Do Your Own Will. (The final option is free!)

2. Create an advanced directive. An advanced directive is another legal document you’ll want to lock down. It explains what kind of medical care you’d want in the event you can’t speak for yourself.

The most common types of advanced directives are the living will and the durable power of attorney. A living will spells out your health care wishes in the event you’re terminally ill and unable to express your wishes or permanently unconscious. Meanwhile, a durable power of attorney is a document in which you name a trusted person to make health care decisions for you in the event you’re unable to do so.

An attorney can help you create an advanced directive or you can create one for free online using a form from your state. (Check your state’s website for its individual form.) If you go the latter route, make sure to check your state’s laws about advanced directives. Some require you to sign them in the presence of a witness, while others require them to be notarized. (And yes, you can now get documents notarized online through services like notarize.com.)

3. Look into life insurance. If anyone depends on your earnings or unpaid labor (I’m looking at you, stay-at-home parents and caregivers), it’s absolutely essential to have at least some life insurance in place. From funeral costs to the mortgage to everyday living expenses, life insurance steps in to smooth things over financially if you aren’t in the picture.

I know the last thing many of us want right now is an added expense. But this is one well worth having—and it’s probably a lot less than you think. A healthy 30-year-old can get a $250,000 20-year level term policy for just $13 a month.

Any amount of life insurance is better than none at all, so contact an agent today to get a policy that works for your life and budget. (Like lawyers and notaries, many of them can work with you over phone, email and teleconferencing tools!)

4. Consider disability insurance. Illnesses and injuries curtail many people’s careers and lifetime earnings unexpectedly every year. With respect to the current crisis, those hospitalized for COVID-19 often have long roads to recovery as well as lifelong complications. Whether the health challenge leads to short-term or permanent consequences, it’s hard to stay on top of bills when your paycheck stops.

This is where disability insurance can be a lifesaver. This “insurance for your paycheck” protects your income until you’re able to return to work. Like life insurance, there are policies for every situation and budget. Learn about the three main ways to get disability coverage.

I’m the first to admit that contemplating these realities isn’t a fun way to pass the time. But something far worse is knowing that the people I love the most would be in a bind if the unthinkable happened. Plus, tackling these to-do’s gave me a much-needed sense of control during these unpredictable times—I hope it does the same for you, too.