The cost of having a supplemental insurance policy varies by your age, health, and how you purchase the policy.
Supplemental insurance can cover you in addition to having an existing life insurance policy, and you may buy it through your employer or a separate company. The cost of having a supplemental insurance policy varies by your age, health, and how you purchase the policy. This article discusses the significance of supplemental insurance.
What is a Supplemental Insurance Plan?
Even though many employers provide life insurance at no or a meager cost as part of an employee benefits package – the coverage could fall short. Supplemental life insurance enhances the primary life insurance policy provided by your employer. You may also purchase a permanent life insurance or a whole life policy to help fill in any coverage gaps. Other supplemental coverage options might include:
- Burial insurance
- Child life insurance
- Spouse or partner life insurance
- Accidental death
Considerations on How Much Supplemental Insurance You Need
- Age: Older adults might have accumulated more property, debt, and financial responsibilities, and that comes with a higher supplemental life insurance policy for surviving family members to cover those financial obligations.
- Debt: The government discharges federal student loans when you pass away. But, your family might have to pay other loan types with funds from your estate, or cosigners will have to make the payment.
- How much income you earn: Buying a larger amount of supplemental life insurance might be necessary if you are the high-income earner of your household.
- The number of children you have: Consider your children’s living expenses and future education costs when selecting the right coverage amount.
- How many dependents you provide for: Also, consider the continuous costs when selecting coverage if you care for an extended family or an aging parent.
- Your legacy plan: You may need more coverage if you want your life insurance to cover more than basic living expenses and provide an inheritance to beneficiaries.
Who Needs the Insurance?
People who financially provide for others should consider buying supplemental life insurance.
- You can reduce your family’s financial burden during bereavement
- Additional life insurance coverage could provide an inheritance for heirs that is used to develop generational wealth.
- Supplementing your basic life insurance to boost your death benefit can provide beneficiaries with a larger lump sum payout to pay off expenses such as college tuition or mortgage payments when you die.
- You may add your partner as a policyholder on a supplemental policy, so if that partner dies, the coverage could provide you the cash you need to manage costs.
Ultimately, if you choose to buy supplemental life insurance from a provider, contact The MWE Partnership at 410-394-9617.
Get in Your Voluntary, Supplemental, and Health Insurance Policies with the MWE Partnership!
Are you a business looking to provide your employees with essential voluntary benefits? If so, look no further than The MWE Partnership. When you choose The MWE Partnership, you get experienced service and comprehensive voluntary benefit options that will meet all your employees’ needs. With over 17 years of experience, The MWE Partnership is your go-to provider for all your supplemental benefit needs. If you are interested in finding out how The MWE Partnership can help your business, contact us today! We encourage you to like our Facebook page and follow us on Twitter and LinkedIn for the latest voluntary benefit news!