You usually purchase supplemental life Insurance sometimes also known as employee-paid or employer-sponsored life insurance from your employer. Supplemental life insurance may consist of: your regular life insurance policy is not enough to cover all your needs. You need additional coverage for certain expenses. You are the beneficiary of your employer’s plan and you have an option to withdraw before the term of your policy expires. If you are thinking about withdrawing early, discuss the terms of your policy with your broker or agent.
Individual health cover policies pay a lump sum that will cover expenses such as hospital bills, medicine, cremation and much more. Some policies pay a guaranteed return and some policies allow you to opt for a payout, but you need to be very careful about this. There are many different types of final expense policies available to policyholders. It would be wise to compare different types of policies to see which ones offer the best benefits and most flexibility.
Whole Life Insurance Company. These policies pay a guaranteed amount up until your death. Unlike other life insurances policies, you only pay premiums that are set by the insurance company. This means you get to choose your own coverage amounts and you can even change it at any time.
Some policies pay after death while others offer the option of a terminal benefit. This basically means they will payout the funeral and burial expenses. They do this based on their set amount. For example, a $500 policy will typically cover the funeral and burial costs up until the set amount has been reached. Most Whole Life Policies will set the level at a fixed dollar amount.
Group Health Cover through your Employer. Most employers offer some type of supplemental life insurance through their employer. Sometimes this is called group insurance. If you work for an employer that does not offer this coverage, look into purchasing group coverage through an outside source. You may be able to get a better price than with your employer if you purchase group coverage online or elsewhere.
Cash Value Supplemental Policy. Sometimes there is a need for a cash value final expense policy. These types of policies are usually purchased to replace a final expense life policy. Most insurance companies only pay the interest on the premiums. The premiums are not refundable and the cost of the policy typically seems very high. The good thing about cash value policies is that the premiums are typically less than if you were to buy a traditional final expense policy.
Term Life Insurance through an Employer. If you are offered coverage by your employer and the premiums seem very high, look into purchasing term life insurance. These policies are generally affordable and can be purchased at a fair market value. This can help you to replace your coverage if it becomes unavailable through your employer, or if you become disabled.
Burial Insurance through an Employer. If you have coverage from your employer and it costs too much, you may want to consider shopping around for a burial insurance company. Many insurance companies will offer this kind of coverage, and it can help replace your burial costs if you pass away unexpectedly. Make sure you shop around and compare premiums between various companies to ensure you get the best value for your money.
Certain Policies Are Available Only Through an Employer. Certain policies are only available to those who are working for the company and receiving benefits from it. These policies include long term disability, life and health insurance, and disability income protection. Although your employer probably provides you with a group coverage quote, you should also check with the state to find out which specific plans they offer. Some states will allow you to purchase additional policies outside of the group plan provided through your employer, and some may even provide cheaper supplemental policies.
How Does Your Employer Provide Supplemental Life Insurance? Many employers offer their employees life coverage options. Many large corporations offer long term disability benefits and will pay a percentage of your wages for up to forty years. They will also often pay for your burial expenses in some cases. If you have coverage through an employer, you can often purchase a supplemental policy from your employer, at a discounted rate.
Open Market – Many companies that offer permanent life insurance policies have open market plans for those who want to purchase supplemental insurance policies outside of their company. The premiums for these policies are often more expensive, due to the increased competition. The premiums can be paid monthly or annually and will provide coverage amounts that are much less than the premium costs of some open market supplemental insurance policies. Because the rates are usually higher, it is important to talk with an agent who specializes in the open market supplemental insurance policy to find out if this option is right for you.