Life Insurance is something that most people need as they get older, and for the most part, your job might provide you with adequate life insurance coverage. Unlike many traditional group plans, supplemental life insurance can range from a standard term period up to a permanent whole life insurance plan. So what is supplemental life insurance, and how does it work?

What is Supplemental Life Insurance?

The Benefit of Supplemental Life Insurance

If you have group life insurance through your job, then you may think that you have plenty of coverage. If you’re young, and single, then this may very well be the case. If you have a family, and a mortgage, then this may not be enough coverage. Most group life insurance plans offer anywhere between your annual income multiplied by 2-5 years.

This may seem like plenty, but what happens once that money begins to trickle out? If you don’t want your family to end losing your house, or your kids switching schools, then a supplemental life insurance plan might be right for you.

Supplemental life insurance plans, by design, are not to be used as a replacement to your existing policy. They should only be used as a way to ensure you have the exact amount of coverage you need.

How to Obtain Supplemental Life Insurance?

If you have a group life insurance plan through your employer, then it might be easier than you think, and you might not need to take a medical for additional coverage. This is even better if you like the company you have it through, and it only takes a couple of phone calls. The company will likely be happy to add any insurance you need to your plan, but you need to be willing to pay more out of pocket.

Now, if you plan on leaving your job in the future, then it might be a better option to shop outside of your current plan. There are plenty of great life insurance companies out there that can cover any gaps you might have in your coverage. Some good companies to look out for are New York Life, Northwestern Mutual, Mass Mutual, Prudential, and Guardian.

These companies all have high ratings, and financial strength, which can leave you feeling confident in your supplemental plan. Just make sure that you explain your situation as best as possible to any agent who is going to be assisting you, because they’ll be able to get you the best plan for your needs.

Issues with Supplemental Coverage

When looking at supplemental coverage, there are some things you should be aware of. Generally speaking, group life insurance plans are not the most portable. If you end up leaving your job, then your life insurance will most likely terminate.

If you want to avoid this issue, the best way is to obtain supplemental coverage is through an outside company. It is not exactly easy to obtain life insurance on your own, though, and a medical will be required. If you’re in poor health this will affect the rating an underwriter assigns to you.

Final Thoughts

If you’re going to implement a supplemental life insurance plan, you’re going to need to do some research. Life insurance can be versatile, and many options exist outside of term life insurance plans. Before you make any moves in regards to your coverage, it is in your best interest to consult with an agent about which product is right for you.

Know more: What is Universal Life Insurance?