In today’s economic meltdown, employer benefits are one of the advantages to a full-time job. And most employers offer their full-time workers some life insurance that comes at no cost. If this is the case, there is virtually no reason not to take the offer. While the amount may be small, it will still help friends and family members offset the cost of your funeral in the event of your death.

But according to About.Com, there might be a way that you can increase the life insurance your employer provides at a small cost. If your employer offers life insurance, ask about what other plans are available. If you can upgrade to something that provides more benefits than the standard, do so. Generally, the cost to you will be lower. And, often, the standard amount of life insurance that your employer offers you is not enough to support your family in the event of your death. If you’re wondering how much life insurance you need, you can always check out life insurance calculators or speak to a financial adviser.

However, there are other benefits to getting your life insurance from your employer. The first $50,000 of your life insurance policy purchased through your full-time employer cannot be taxed by the IRS. This allows you even more savings, as you will not have to count this money as income on your tax return. Rather than buying a personal policy where you’ll have to pay more and pay taxes, opt for the employer-sponsored life insurance that doesn’t require these penalties.

You do want to make sure you are careful when buying through an employer, though. First, make sure to understand what kind of life insurance is being offered—term or whole life. Usually, your employer will provide you with term life insurance—insurance that does not accrue cash value. If you want an investment through insurance, you will likely need to buy your own supplementary insurance. In addition, remember that term life insurance expires after a term. If you want to continue receiving the insurance, you’ll need to renew.

Also, make sure that your family members are listed as the beneficiaries of any life insurance policy you are receiving from work. A recent trend highlighted in the Michael Moore film Capitalism: A Love Story and reported by ABC is employers listed as beneficiaries on employee life insurance plans. If you have one such plan, your family will not receive any money if you pass away. So be careful to make sure you’re not confused before it’s too late.

In general, taking your employer’s health insurance plan is a good idea, especially if it’s free. But don’t think you will not need to buy any additional health insurance if you have an employer’s plan. It’s likely that you will need supplemental insurance to be sure that your family is really covered.

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