Your employer plan probably covers 1–2x your salary. Experts recommend 10–12x. That gap could leave your family hundreds of thousands of dollars short. Here is how to close it.
Adjust your salary to see the gap between employer coverage and what your family needs.
Based on 1x salary employer coverage vs. 10x recommended
1–2x salary covers months, not years. Your family needs 10–12x to maintain their lifestyle.
Leave your job, lose your coverage. Employer life insurance ends when employment ends.
Group portability options are limited and expensive. You start over with each new employer.
Employer plans restrict beneficiary choices and offer no policy customization.
Group term life builds zero cash value. Individual whole life can serve as a savings vehicle.
The most affordable way to close the gap. Choose 10, 20, or 30-year coverage that you own independently of any employer. Best for income replacement during working years.
Learn About Term Life →Permanent coverage that never expires and builds cash value. Ideal for final expenses, estate planning, or supplemental retirement income. Stays with you for life.
Learn About Whole Life →Many employers offer voluntary (employee-paid) supplemental coverage at group rates through payroll deduction. Convenient but still tied to your employment.
Learn About Group Life →Add coverage for your spouse and children through individual or voluntary group plans. Ensure your entire family is protected, not just the primary earner.
Get a Family Quote →Keep your free employer coverage and add individual policies on top. Here is the recommended stack.
Optional permanent coverage for final expenses and estate planning
The main gap-filler — affordable coverage matched to your income replacement needs
Keep it — it is free. But do not rely on it as your only coverage.
The key principle: Your employer coverage is the foundation (free), individual term fills the income gap (affordable), and whole life adds permanent protection (optional). Together, they create comprehensive, portable coverage.
If your employer provides $100,000, here is what additional individual term coverage costs.
| Your Age | Add $250K (20yr term) | Add $500K (20yr term) | Add $1M (20yr term) |
|---|---|---|---|
| Age 30 | $14/mo | $22/mo | $38/mo |
| Age 35 | $17/mo | $28/mo | $48/mo |
| Age 40 | $24/mo | $40/mo | $72/mo |
| Age 45 | $36/mo | $62/mo | $115/mo |
| Age 50 | $52/mo | $95/mo | $180/mo |
* Rates for non-smoking males in good health. Female rates are typically 15-20% lower. Actual rates depend on health and underwriting.
The biggest advantage of individual supplemental coverage: it moves with you.
Experts recommend total coverage of 10–12x your annual income. Subtract your employer coverage to find the gap. For example: $75,000 salary with 1x employer coverage means you need approximately $675,000–$825,000 in supplemental coverage.
Yes, for most working adults with dependents. A 35-year-old can add $500,000 in term coverage for about $28 per month. The cost of leaving your family underinsured is far greater than the modest monthly premium. It is one of the best-value financial decisions you can make.
Absolutely. Individual policies through Palmwood are portable, offer more options, and often provide better rates for healthy applicants. You can purchase coverage regardless of what your employer offers. No employer involvement needed.
In most cases, employer-paid group life ends with your employment. Some plans offer portability or conversion, but these are often expensive and limited. This is the primary reason to own individual supplemental coverage that travels with you regardless of job changes.
For most people, term life is the best supplemental option — it provides the most coverage for the lowest cost. Whole life is appropriate for permanent needs like final expenses or estate planning. Many people use both: term for the income gap and whole life for permanent protection.
Yes, and this is the recommended approach. Keep your free employer coverage as the base and add individual policies to reach your target. There is no limit to how many policies you can own, and all benefits are paid to your beneficiaries.
Use our free life insurance calculator to determine exactly how much supplemental coverage your family needs based on your income, debts, and financial goals.