If you're asking how much payroll-deducted life insurance should you purchase above your free group term, there are a few considerations to think about.
First, be sure you understand what happens to the coverage if you leave your employer. Most of these plans are not portable, and they terminate when you leave the company. For that reason, I would not look to these plans as a replacement for personally owned life insurance outside of your employer.
The other issue is that contrary to conventional wisdom, payroll deducted life insurance may not be lower in cost than buying outside of work. Many of these companies who issue the coverage use a less stringent underwriting process, which may be a good thing if you are not insurable at the best rate classes.
However, if you are in very good health, you will likely pay less for individual coverage than through payroll deduction. There's also the term conversion benefit on personally owned coverage that you may not have on the voluntary policy.
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First, be sure you understand what happens to the coverage if you leave your employer. Most of these plans are not portable, and they terminate when you leave the company. For that reason, I would not look to these plans as a replacement for personally owned life insurance outside of your employer.
The other issue is that contrary to conventional wisdom, payroll deducted life insurance may not be lower in cost than buying outside of work. Many of these companies who issue the coverage use a less stringent underwriting process, which may be a good thing if you are not insurable at the best rate classes.
However, if you are in very good health, you will likely pay less for individual coverage than through payroll deduction. There's also the term conversion benefit on personally owned coverage that you may not have on the voluntary policy.