Is the Life Insurance Through Your Job Enough?

Introduction to Life Insurance Options in Austin

Life insurance through work can be a useful benefit. The next step is finding out how much it pays, how long it lasts, and whether it covers the needs your family would face without you. For families in Round Rock, Austin, and across Central Texas, that review is worth doing before a job change, not after.

According to the U.S. Bureau of Labor Statistics, 59% of private-industry workers had access to employer-provided life insurance in March 2026. That measures access to a benefit, not whether the coverage was sufficient for each household. [1]

Check the actual benefit amount

Find your benefits summary or request the plan’s coverage certificate. Write down the death benefit, whether you have elected supplemental coverage, and any limits or reductions that apply. Then compare the benefit with your household’s estimated need.

For example, a hypothetical employee earning $70,000 whose plan pays twice their salary would have a $140,000 death benefit. If that family’s separately calculated need were $900,000, the difference would be $760,000 before accounting for other resources. These numbers are for illustration only and don’t reflect a typical employer plan.

Our companion blog post, titled How Much Life Insurance Do You Need, walks Central Texas individuals and families through a “needs” calculation using household support, debts, education goals, and available savings.

Find out what happens if you leave your job

The Texas Department of Insurance says employer life insurance typically ends when you leave your job. Some plans offer ways to continue or convert coverage. Ask about eligibility, deadlines, and the new cost before relying on that option. [2]

A policy you buy individually can provide continuity through a job change, provided you keep it in force and meet its terms. That may be useful if you expect to change employers, retire, or become self-employed.

Get a personal quote to understand the cost

A general price estimate cannot tell you what your own coverage will cost. The department also notes that premiums depend on age, health, risk factors, coverage amount, and policy features. [2] Get quotes for the amount and length of coverage you are considering.

Term life covers a defined period. Permanent life can provide longer coverage and may include cash value but generally carries higher premiums. [2] Ask an advisor to explain how each option fits the years and obligations you want to cover.

Compare quotes with the same benefit amount and coverage period. Ask whether the premium is guaranteed, what could change at renewal, and which optional benefits add to the cost. A price only becomes useful when you understand what it buys.

Keep the premium within your household budget

Choose a payment you can sustain alongside your other bills. If the first quote feels out of reach, ask about a different coverage amount, term length, or policy structure and what each change would mean for your family.

If you plan to buy more coverage later, remember that a future application may depend on your age, health, and the products available at that time. Buying enough coverage now can be simpler than counting on adding more later.

Bring these five questions to your benefits team or advisor

1. What is my current death benefit, including any supplemental coverage
2. Does the benefit decrease with age or another change in status?
3. When does coverage end if I leave employment?
4. Can I continue or convert coverage, and what deadlines and premiums apply?
5. How much additional coverage would address the needs my workplace benefit does not cover?

Frequently asked questions

Can workplace coverage be enough?

• Yes, if its benefit and terms meet your household’s needs. Review the numbers and employment conditions before deciding.

Should I cancel workplace coverage when I buy an individual policy?

• Review both policies first. Workplace benefits may still be useful, particularly when an employer pays for basic coverage.

Does everyone qualify for the same price?

• No. A quote and underwriting review determine the coverage and rate an insurer will offer.

Review your coverage with a local advisor

Chavez Insurance Group can help you compare your workplace benefit with your family’s needs and explore additional coverage. Have your benefits summary and any existing policies ready so the review starts with accurate information.

Request a life insurance quote through Chavez Insurance Group.

Sources

[1] U.S. Bureau of Labor Statistics — Table 5 Life insurance benefits March 2026

[2] Texas Department of Insurance — Life insurance guide