A Life Insurance Strategy
An individual life insurance policy and supplemental life insurance together can provide solid life insurance protection. An individual policy isnt dependent on your job, and you can buy a coverage amount and length that suits you. Group life is a valuable supplement because its generally inexpensive.
Why Purchase Supplemental Life Insurance
If you have free life insurance through your employer, as many people do, its natural to wonder why youd want to pay for more coverage. These are just a few of the many reasons supplemental insurance is useful:
The basic life insurance policy you have is not enough to provide support for those who depend on your income.
Additional coverage is required for certain costs, such as burial fees.
A portable policy of life insurance is essential to protect you no matter where you are located.
You may need additional coverage, such as life insurance for your spouse.
Supplemental Life Insurance: Whats The Bottom Line
Supplemental life insurance as an employee benefit makes it easier for you to pay the monthly payments. Private supplemental life insurance may be more expensive, but you have more freedom to customize your policy.
Ultimately, supplemental life insurance can provide life insurance for other people in your household and reach in areas where standard life insurance cant.
Now that you know more about supplemental life insurance, its time to start comparing the top companies near you. Use our free online quote tool to compare multiple companies in your local area.
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First Some Life Insurance Basics
The basic role of life insurance is to provide for your loved ones after your death. How well a life insurance policy does that depends on the amount of coverage you have.
A $100,000 life insurance policy through a private insurer may range from around $20 to $50 a month, depending on your age and health. Employer-sponsored group rates are typically less.
Supplemental life insurance enhances your existing life insurance policy with even more benefits. This is particularly useful if your company’s life insurance coverage is not sufficient for your family or financial obligations.
The cost of supplemental life insurance through a private insurer ranges from about $18 to $29 a month, depending on the type of coverage. Again, employer-sponsored group rates for supplemental life coverage are usually cheaper.
Keep reading to learn the ways supplemental life insurance can benefit your loved ones.
Should I Get Supplemental Life Insurance
We do not recommend you get supplemental life insurance. You can go ahead and sign up for the basic group life insurance through your employer, but dont shell out for supplemental life insurance.
Why? First up, its costing you money. And if youre going to be spending money on life insurance, your best bet is buying term life insurance through an insurance agent outside of work! Youll be paying less in premiums that way, compared to the supplement through your employer.
Not only will this private term life insurance give you more of a death benefit, but itll also stay with you through whatever job youre doing.
And dont forget to get some long-term disability insurance too which will cover lost income if you become injured or disabled and cant work.
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Reasons To Buy Life Insurance On Your Spouse
Just as there are a number of reasons why you should buy life insurance on yourself, there are several good reasons to buy life insurance on behalf of or with your spouse and name yourself as the beneficiary.
Connect with a licensed life insurance agent today for any additional questions you may have about buying life insurance with your spouse. You can reach out online or by calling 1-855-303-4640.
Voluntary Supplemental Life Insurance
Princetons Supplemental Life Insurance Plan provides the option to purchase additional life insurance to supplement the basic term life Insurance provided by the University.
Employees may elect up to six and one-half times the annual base salary in supplemental life insurance to a maximum volume of $1.5 million. This plan provides term life insurance in a lump sum benefit equal to one times to a maximum of six and one-half times the employees annual base salary . The total combined basic life and supplemental life insurance maximum volume is $2 million.
The Supplemental Life Insurance Plan has the same benefit reduction schedule utilized with the Basic Life Insurance Plan for covered employees age 60 and older, per the Benefits Reduction Table. If, due to the reduction of insurance, the current amount of supplemental life insurance is further reduced, The Hartford will allow conversion of the amount of coverage lost to a whole life policy.
The monthly supplemental life insurance rates are as follows:
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What Is Supplemental Spouse Life Insurance
Supplemental spouse life insurance covers your spouse should he/she die. Are you wondering why I would need spousal life insurance when my spouse doesnt work?
Think about it.
Just because your spouse doesnt bring in income doesnt mean he/she doesnt provide value. If you have children, does your spouse take care of them? Does your spouse take care of the house?
If your spouse were to die, what services or assistance would you need to cover? These cost money. For example, if you need a daycare provider for the kids or a housekeeper for the house, the life insurance proceeds could cover those costs, along with the cost of your loved ones final arrangements.
If you dont want to buy another policy to insure your spouse, you can add him/her to your life insurance with supplemental life insurance for your spouse or domestic partner. This is most common through your employer they provide you with a term life insurance policy with the option to add supplemental coverage for your spouse or domestic partner. Some even offer additional child life insurance.
Accidental Death And Dismemberment Insurance
In some supplemental life insurance plans, you have the option to add coverage in the event of accidental death. This type of add-on rider can provide extra benefits if you were to pass suddenly due to an unintentional death or dismemberment.1 Accidental death and dismemberment insurance can be helpful because many families may not be financially prepared for the sudden loss of a loved one.
Each company takes a different approach to this type of coverage. Its important to read the fine print of the policy you are considering in order to make an informed decision. Alternatively, Aflac offers accident insurance that pays benefits for a variety of covered accidents.
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Insurance Benefits To Help During Terminal Illness
Additional medical bills, hospice care, or unexpected travel are just a few of the expenses that can come up when you least need extra worry. With the accelerated benefit option,2 you can use up to 80 percent of your coverage amount if you are diagnosed as terminally ill with a life expectancy of 12 months or less. Accelerated Benefits are payable only once.
What The Plans Cover
- Basic Life Benefit equal to employee’s annual salary up to a maximum of $50,000
- Core Life $5,000 benefit
- Supplemental Life Four coverage levels from $20,000 to four times annual salary up to $1 million.
- Basic Dependent Life $5,000 coverage each for spouse or domestic partner and/or eligible children
- Expanded Dependent Life Up to 50 percent of employee supplemental life benefit for spouse or domestic partner $10,000 each for eligible children
- Senior Management Life Two times senior manager’s annual salary to a maximum of $800,000. This benefit is in addition to Basic Life.
Benefits are paid to your beneficiaries if you die while employed or on paid leave, or during the first four months of approved leave without pay or temporary layoff. Your beneficiaries receive these benefits in addition to any other death benefits for which you may qualify.
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Supplemental Spouse Life Insurance Provides Coverage To Your Spouse As An Add
Imagine you just got yourself a term life insurance policy, or that youre covered under your employers insurance plan, but somehow you need additional coverage because your financial liability is too much. Insurance companies offer you lots of different options if that is the case like having add-ons or supplemental coverages that you can choose according to your own needs.
Lets get into details of what supplemental life insurance is and how a spouse can be attached to the policy.
How Does It Work
If your spouse or child died, the supplemental life insurance you bought would pay you the coverage amount. Since youre the policyholder, you are also the automatic beneficiary of the supplement.
Just like if you died, your beneficiaries would receive the death benefit the same is true of supplemental spouse life insurance. Most policies have smaller coverage limits than if you bought a separate policy, but if your spouse doesnt work and youre just looking for a supplement to get you through the child-raising years or to cover the cost of getting help around the house, a supplemental policy may suffice.
Like any life insurance, the death benefit only pays out if the policy is paid on time.
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Types Of Supplemental Life Insurance Through Work
Most supplemental life insurance policies through work are group term life insurance, and coverage is conditional on your employment. However, depending on the policys portability, you may be able to convert your group life insurance to a personal policy and take it with you when you leave.
Here are the four main types of supplemental life insurance offered through employers:
Supplemental employee life insurance adds coverage to your own policy.
Supplemental spouse life insurance covers the life of your spouse. In many cases, this type of policy will also cover a domestic partner.
Supplemental child life insurance covers eligible dependents.
Supplemental accidental death and dismemberment insurance covers you in addition to your basic policy. AD& D insurance pays out if you die or are seriously injured in an accident.
Employers often require you to buy a supplemental policy for yourself before being eligible for supplemental spouse or child life insurance.
Supplemental Life Insurance Metlife
AD& D insurance pays benefits if you suffer a covered accident that results in paralysis or the loss of a limb, speech, hearing or sight, or if you suffer a covered fatal accident. MetLife Supplemental Accidental Death & Dismemberment Insurance.
MetLife Supplemental Accidental Death & D ismemberment Insurance:
- Employee: $10,000 up to $250,000 in $10,000 increments
- Spouse/or StateRegistered Domestic Partner: $10,000 up to $250,000 in $10,000 increments
- Dependent Child: $5,000 up to $25,000 in $5,000 increments
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Is Supplemental Life Right For You
Supplemental life works best as an addition to, not a replacement for, individual coverage. You can get extra insurance through a group planpossibly at a discountwithout having to worry about losing all your coverage if you leave the group.
That’s why you might want to use different kinds of policies for different needs. For example, consider earmarking individual insurance to cover critical expenses and using supplemental coverage for “nice-to-haves” . A life insurance calculator can help you identify your goals and find the right balance.
Supplemental Life Is Guaranteed Coverage
Typically, you automatically qualify for basic life insurance policies offered through an employer regardless of your age or medical history. For supplemental life insurance, companies will only guarantee approval of your enrollment up to a set amount of coverage, such as $100,000 or 2x your salary.
If youâd like to buy more than that amount, youâll most likely need to complete a separate application and/or medical exam to prove that youâre an acceptable risk to the insurance company. Your employer may offer guaranteed coverage only during initial enrollment or open enrollment periods.
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Ad& d: Accidental Death And Dismemberment
This accidental death and dismemberment policy covers you if you lose a limb or die accidentally
If you already have a life insurance policy that covers accidental death, death by disease, death by chocolate, whatever kind of death you can come up with, why would you need additional coverage for an accidental death?
Hint: You dont. Not only are these policies cheap, theyre also worthless because of the long list of conditions the insurance company says it wont payout for. Buyer beware: The devil is in the details, and AD& D policies are chock-full of those details!
And dont be fooled into AD& D even if the insurance rep says youre covered if you dont die but just lose a limb or something. If you have long-term disability insurance in placeand we hope you do because its just as important as getting term life insuranceyoud be covered for income lost because of an injury or disability anyway.
How much long-term disability insurance do you need? We say get as much coverage as you canaround 6070% of your income. Because this is the amount of your salary you bring home on a normal day
Supplemental Group Life Insurance Offered Through Work
Group term life insurance is typically the type of life insurance employers offer, and coverage is conditional on your employment. Some group life insurance is âportable,â meaning you can take it with you if you leave the company.
These are the four main types of life insurance employees are offered at work:
In many cases, youâre required to buy a supplemental policy on your own life before youâre eligible to buy supplemental spouse or child life insurance.
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What Does It Mean To Port A Group Life Insurance Policy
If you have group life insurance through an employer, the insurance is likely job-dependent. If you leave the job youll generally lose the group life insurance. But sometimes you can port the workplace insurance, which allows you to continue buying the group life insurance after youve left the job.
For example, you might be offered portability if your employment is being terminated.
Supplemental Life Insurance Might Offer Add
Employers might include some additional benefits in a group policy such as an accelerated death benefit or a waiver of premium benefit. With an accelerated death benefit, employees suffering from a terminal illness might be able to receive a portion of their life insurance payout. The payout youre eligible to receive is usually a percentage of the policys death benefit amount. This limit will depend on the insurer, but typically ranges between 50% and 90% of the full death benefit.
A waiver of premium benefit allows employees who have become totally disabled to continue their group life insurance policy without paying a premium. Usually, employees must be under age 60 and be disabled for at least 180 days to qualify.
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Do You Need Portable Coverage
One more thing about supplemental life insurance: If you decide to purchase it, be sure to check whether you can take the policy with you if you leave or lose your job.
If you want life insurance in place for a particular amount of time , irrespective of your employment situation, its something to consider. On the other hand, if you buy your own term life insurance policy, it goes where you go, and keeps protecting your family even if you change employers .
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How To Buy Life Insurance For A Spouse
There are three primary ways you can buy a life insurance policy with your spouse.