Supplemental life insurance: 3 things you need to know

Supplemental life insurance will increase your coverage and increase your protection.

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

But, if they are relying solely on coverage provided by their employer, it is likely that they will need to increase their coverage in another way. This is where supplemental life insurance comes into play.

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

If you are 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 get started by getting a quote today.

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

You can purchase additional life insurance through your employer

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

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

Supplemental life insurance prices vary

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

But this is not always the case. Get a quote from an employer-provided plan and match it to the market at large. Make sure you’re reviewing the same amounts of coverage and specs to make sure you have an apples-to-apples comparison before making a final decision.

Get a price estimate and choose the type of policy 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 quit your job. Can you bring your own extra coverage with you? The answer depends on your company, plan and provider. Supplemental life insurance may be “portable,” but it will likely cost you more to maintain because you won’t qualify for the same rates you did when you worked for your previous employer.

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

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

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

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