Most people, especially if they are responsible for their family's well being, feel that purchasing life insurance is something that they must do. Although they understand that having such a policy is a must, they may also want to consider adding the benefits of purchasing a supplemental life insurance policy.
Adding a supplemental life insurance policy to your insurance portfolio can make the difference between your survivors having a difficult time getting by and getting by in comfort.
Supplemental life insurance is additional insurance coverage that you can purchase to help take care of your family after you're gone. Supplemental life insurance policies are often made available as part of an employee benefits package. Often this optional plan will allow you to acquire anywhere from one half to three and one half times your salary in additional coverage.
One of the nice things about supplemental life insurance coverage is that you are guaranteed to be approved for at least the minimal coverage without having to get a physical. One of the things that isn't so nice about this coverage is that your employer does not subsidize the payments. You are 100% responsible for them. However, although you will pay the full cost, the insurance is made available at group rates which are lower than the rates you would pay for individual coverage.
Since employees are responsible for making the premium payments, they should choose the amount of coverage that both works best for themselves and their family as well as one that affordably fits into their budget. Also, if you choose a higher amount, you will probably have to provide the insurance company with proof that you can afford the additional payments.
One of the things that can substantially lower the monthly payments is that you can usually get supplemental term insurance. As with basic term life insurance, supplemental term life coverage is offered with limited benefits. The additional death benefit that you would be purchasing would be good only for the term that's designated when the premiums are paid.
However, there's a neat twist on some types of supplemental coverage. A number of permanent life insurance policies give you the option to buy supplemental term life insurance that has a cash value.
If you are healthy, purchasing additional supplemental life insurance may not be necessary. However, if you do have any health problems then it would be in your best interest to consider buying this coverage.
