What Is Supplemental Life Insurance?
Supplemental life insurance can be purchased in addition to your employer-based group life insurance policy to add extra coverage. Employers may choose to provide their employees with life insurance policies, but often those policies don't offer death benefits that are substantial enough to support the beneficiaries. That's where supplemental life insurance can help.
Why Your Group Life Insurance Policy Might Not Be Enough
Group life insurance policies usually offer smaller death benefits than what you could obtain on your own on the individual market. The big benefit to this type of coverage is its affordability (it may not cost anything) and you aren't subject to a medical exam like you would with an individual policy.
Companies may offer one to two times your annual salary in life insurance coverage, but you could need up to 10 times that amount to keep your family from having to make major lifestyle changes after you die.
Your employer may offer you the chance to buy supplemental life insurance to increase your death benefit. Unlike the basic policy, it may require you to answer questions about your health history.
What's On the Individual Market?
If you're still concerned that the life insurance coverage offered through your employer is insufficient, you can always purchase an individual policy on your own. While it may cost more than what you get through work, you'll be able to choose a benefit amount that will sustain your loved ones' standard of living if you pass away. You also won't have to worry about losing coverage if you change jobs.
See what policies are available in your area speaking with a licensed insurance agent. He or she can help you determine how much coverage you need to protect your family*.
Give us a call today at 1-855-303-4640.
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Sources:
Bankrate: http://www.bankrate.com/finance/insurance/supplemental-life-insurance-1.aspx
NerdWallet: https://www.nerdwallet.com/blog/insurance/pros-and-cons-of-life-insurance-through-work/
*Applications for insurance may be subject to acceptance by insurer. Rates and coverage amounts will depend upon the carrier selected.
