What is Supplemental Life Insurance?

Supplemental life is coverage you can buy in addition to a term or whole life policy. Usually full-time employees are offered supplemental life coverage for free or for minimal cost by their employer. It could cover burial costs, accidental death, and dismemberment.

How Does Supplemental Life Insurance Work?

Supplemental life coverage alludes to any extra security that you may buy on a group premise well beyond what your employer offers.

Group supplemental life insurance is usually available and offered by your employer. For free or at a reduced cost. Sometimes you can take these policies with you if you leave the employer. Please check with an agent to verify what’s covered in your policy. Unlike some of the other group insurance policies your employer may offer, you might have to show that you’re insurable. They may request health / medical records or information. Although, with basic coverage offered by most employers, all employees will qualify and they will not be required to show evidence of insurability. The result, the insurance company may not offer increased coverage if they are not comfortable with the risk.

Types of Supplemental Life Insurance

Accidental Death and Dismemberment (AD&D)

AD&D policies pay out if the insured is involved in an accident that causes the insureds death, causes the them to become paralyzed or it results in the loss of one of their limbs, vision, hearing or a similar result as specified in the insurance policy.

Accidental Death and Personal Loss Insurance

Accidental death and personal loss insurance pays the beneficiaries a set amount monthly for a specified time set in the policy in the event that you:

• Fall into a coma for more than 30 days as the result of an accident at work
• Are paralyzed as a result of an accident at work
• Suffer the loss of speech or hearing as a result of a work related accident

Health Specific Insurance

Health specific insurance coverage pays a benefit if you die from a specific medical condition. Some of these conditions include; heart disease, cancer or other types of terminal illness.

Spousal/Domestic Partner Insurance

Spousal Domestic Partner Insurance coverage covers the life of your spouse or domestic partner. The percentage of the amount of the coverage you select on yourself is often the amount available to you. There are other policy limits with coverage and the portability of the policy if you leave your employer.

Dependent Child Insurance

Dependent child insurance policies cover the life of your dependent children. Amounts are often lower than what’s available to employees or spouses and domestic partners.

Burial Insurance

Burial policies are made to cover the cost of burial expenses for the insured. Typically they have a set amount, on average $5,000-$10,000 for the death benefit.

Is supplemental life insurance right for you?

If you’re young & healthy, supplemental life premiums may be higher than what you can find for the same exact coverage on the open market. The reason behind the higher premium, is the insurance company usually knows less about the insured with a supplemental life policy, due to not asking health related questions in the interview process. The result, higher rates across the board to cover the risk. When you’re young and healthy and purchasing life insurance, being “young and healthy” is an aspect of your life you want the insurance company to know expressly about. A type of coverage that asks for less information in return for a higher premium may not be the best route for you.

Who supplemental life insurance can help

Supplemental life is great for someone who has difficulties getting coverage on the open market. Another example of someone who can benefit from a supplemental life policy is, an individual that has found the quotes he or she is receiving are higher than normal. If you live a risky life or smoke, you may want to consider supplemental life.