Growing Family Benefits
|
|||
|
Supplemental Life Insurance
|
|||
Life Insurance Topics |
Supplemental Life Insurance Meaning
Supplemental life insurance can fill the gaps left in many group plans people get at work through their employers. Supplemental life provides important answers to these questions:
The Right Death BenefitSupplemental life insurance means that you can increase your death benefit amount, and make sure that your family is adequately covered. Many group programs provide a death benefit expressed as a multiple of salary, or a fixed death benefit amount. While the coverage is often very affordable, the death benefit amount may not be enough for many employees. Employers may pick a common death benefit amount. But since employee needs vary, it may not be the right amount for everyone. Portable CoverageThe weakness with group life insurance programs is their lack of portability. You are protected only as long as you work for your employer. Do you plan on retiring with your current employer? Do you think you will make it to retirement before being laid off?
Let's face it. Long tenures with one employer are a thing of the past. What happens if you get sick, then lose your job? You lose your group coverage, and you may not qualify for an individual contract. Supplemental life coverage means you get a portable policy that you keep when you separate from your employer. Lock in low rates when you are young, and before health events prevent you from getting coverage. Spouse CoverageMost group life insurance programs protect the lives of the employee. With two income households being the norm, you may not have adequate coverage for your spouse. If your non-working spouse were to die, who would take care of things at home?
Supplemental life means coverage for your spouse. You can elect a single policy, or add your spouse coverage as a rider to your policy. Cash Value College FundingMany parents wait until very late in the game to begin a college savings plan. And those that do sometimes find their fund values plummet just as their child reaches college age.
Supplemental life insurance means cash value accumulation, which helps fund college savings in three ways:
|
||