What is Supplemental Life Insurance?

Supplemental life insurance coverage goes a bit further than a standard life insurance policy. It may go beyond what’s offered by your employer through the employee benefit package.

Supplemental life insurance is just as it sounds, its life coverage that supplements other life coverage that’s offered through your employer. Most companies offer life insurance as part of the new employee benefits package. A portion of the coverage could be offered as part of the employer’s benefit package at a lower cost, or sometimes even free.

There’s always the chance the amount of life insurance available through your employer isn’t sufficient for your needs. If you need a policy that covers more, supplemental life insurance policies are a great alternative.

How Does Supplemental Life Insurance Work?

Supplemental life insurance has to do with any life insurance that you might buy on a group basis over & beyond what your employers benefits offer. You can also purchase supplemental life insurance policies privately.

Group supplemental life insurance is available as optional coverage through employers, this comes at higher premiums. Usually it comes as term life insurance coverage. The policies are transferable if you leave the employer, & you may be able to continue the same insurance coverage. There’s a good chance the cost is higher than you were paying while employed.

Types of Supplemental Life Insurance

Accidental Death and Dismemberment (AD&D)

AD&D policies pay out only if an employee is involved in an accident that causes their death. It will also pay out if the employee becomes paralyzed or loses a limb, eyesight, hearing or a similar debilitating result. Depending on what’s specified in the policy.

Accidental Death and Personal Loss Insurance

This coverage will pay the beneficiaries a set monthly amount for an amount time specified in the policy in the event that you:

• Fall into a coma for an extended time more than 30 days. Resulting from an accident at work.
• Become paralyzed as a result of a workplace accident.
• Suffer the loss of speech or hearing as a result of an accident.

Health Specific Insurance

This insurance coverage pays a benefit if you pass from a “specific” medical condition like heart disease, cancer or some other type of terminal illness. This coverage can be added to other life insurance if the “specific” type of illness runs in the family.

Spousal/Domestic Partner Insurance

This insurance coverage will cover the life of your spouse or domestic partner. Only if offered by your employer. What’s available often is a percentage of the amount of the coverage you select for yourself. There are other policy limits in terms of the coverage and the transferability of the policy if you choose to leave your employer.

Dependent Child Insurance

This coverage will insure the life of your dependent children. Amounts are typically lower than what’s available to employees or spouses & domestic partners.

Burial Insurance

This type of insurance is designed to cover the cost of burial, usually for the policy holder. Usually there’s a set amount, around $5,000-$10,000 for the death benefit.

How to Buy Supplemental Life Insurance

Supplemental life insurance is typically bought through your employer. Most employer group plans have an option to buy additional coverage. Although, there are limits to the amount of coverage that can you can buy.

Premiums will vary based on the amount of coverage you choose. You have an option to pay the full cost of the coverage, vs an amount that’s subsidized by your employer. This is often the case with the starting amount of life insurance offered under the benefit package.

You may also want to look for supplemental life insurance privately through an insurance company. Shop around to see what company offers the best deal on the type of supplemental policy you want. An easy way to do this is to speak with one of our helpful agents. Click here to be directed to our main life insurance page.

Is Supplemental Life Insurance Worth It?

Is supplemental life insurance is worth the cost? It depends on a few factors.

• What amount of life insurance coverage do you need? This is dependent on your unique situation. Are you are married or single? Do you have children or others that depend on you?
• How much life insurance coverage do you currently have?
• Does a supplemental policy have the features and benefits you need?

Ultimately, if supplemental life is for you is dependent on your individual situation. If you have people that depend on you, it’s always a great addition to your insurance portfolio. Our agents would love to answer any questions you may still have, so please feel free to reach out to us at any time 😉