Most employer benefit packages include basic life insurance with coverage worth of 1-year salary. Is this enough? It depends.
If you have debts and dependants, you might need more.
We don’t have dependants, but when we first got our mortgage. It felt very heavy. We were concerned if one of us dies, the debt burden would be too heavy for the remaining spouse. That’s why we decided to get term life insurance to cover the difference between the mortgage amount and the basic life insurance coverage employer benefit included. The premium is quite affordable because we are both healthy and not too old. 😊
As soon as we paid off our mortgage, we stopped the term life insurance since we don’t have debt or dependants. Never pay for any insurance you don’t need.
Mortgage lenders or banks will try to sell you mortgage life insurance. Which one is better – mortgage life insurance or regular term life insurance? The answer is clear. Term life insurance is cheaper and much more flexible.