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Supplemental life insurance: 3 things to know

Insurer protecting a family with his hands; multiple exposure
Supplemental life insurance will increase your coverage and boost your protection. Getty Images

While many Americans currently have life insurance protection through their employer, the amount they have may not be enough to cover them should something go wrong. The question about how much life insurance someone should have is specific to their own individual circumstances and preferences.

But, if they're solely relying on the coverage provided by their employer, it's likely that they will need to beef up their coverage another way. This is where supplemental life insurance comes into play. 

While there are many different types of life insurance, supplemental is the one that will increase your coverage and boost your protection. This insurance, on top of your primary policy, can provide added peace of mind and security that would not be possible by strictly relying on the baseline coverage provided by an employer.

If you're currently in the market for life insurance, or simply want to increase the coverage you already have, now is a good time to do so. You can start by getting a quote today.

As you determine if supplemental life insurance is right for you, there are a series of factors to consider.

You can purchase supplemental life insurance via your employer

Most companies that provide life insurance will also give their employees the option of purchasing a supplemental policy too. The cost of the secondary policy, however, unlike the primary coverage, will be charged to the employee. This can come via deductions in their paycheck that then go directly to the insurance provider.

However, even though your company may provide this option, it's still worth exploring alternatives on the public market. It's possible that you could qualify for a more suitable (and affordable) plan outside of your company's umbrella.

Supplemental life insurance prices vary

While it is worth exploring all options, it's possible that the best rate for supplemental life insurance will come from the plan offered by your employer. The company has a pre-existing relationship with the provider, thus allowing them to pass those savings on to you. 

But this isn't always the case. Get a quote from the employer-provided plan and match it up against the market overall. Make sure you're reviewing the same coverage amounts and specifics to ensure you have an apples-to-apples comparison before making a final decision.

Get a price estimate and pick the policy type that's best for you and your family.

You may be able to bring it with you (at a cost)

So you have a supplemental life insurance plan with coverage you like at a cost you can afford — but then you leave your job. Can you bring your additional coverage with you? The answer depends on your company, plan and provider. Supplemental life insurance can be "portable" but it will likely cost you more to keep it because you won't qualify for the same rates you had when you were working for your previous employer. 

That doesn't mean that the new cost isn't worth paying. Depending on your personal financial situation, the protection it offers may still be valuable. Or, your new employer could offer comparable coverage at a similar cost as your former employer.

Shop around. Compare prices and plans. Depending on where you are in your career, your age and your long-term plans, supplemental life insurance may be a smart choice. If you can afford it, this form of life insurance could make a difference. 

Still not sure if supplemental life insurance is right for you? Get a quote and explore your options today.

Understand your life insurance options

Whether you decide to pursue supplemental life insurance or not, it's still helpful to understand the primary types of life insurance on the market. Here are some of the ones you should know:

  • Term life insurance: This type of insurance covers a set period of years until the policy expires. It's one of the cheaper insurances to buy. You'll have to renew after the time period ends, however, and those rates will likely rise. 
  • Whole life insurance: This type of insurance is pricier but more appealing due to its potential cash value
  • Variable life insurance: This type of insurance has a cash value which you can invest in various securities and stocks.
  • Universal life insurance: This type of insurance is a bit more flexible than others - and it comes with unique tax perks.

Confused by all the potential life insurance types? Don't be! Reach out to a life insurance expert today who can help you find a policy that works for you and your loved ones. 

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