What You Need to Know About Supplemental Life Insurance

Alana Grace

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Photo by Mikhail Nilov on Unsplash

Supplemental life insurance is a type of life insurance that you can buy in addition to your primary life insurance policy. It can help you increase your coverage amount, cover specific expenses, or provide extra benefits in case of certain events.

Why Do You Need Supplemental Life Insurance?

If you have a life insurance policy through your employer, you may think that you have enough coverage for your family’s needs. However, employer-provided life insurance policies often have low coverage limits, such as one or two times your annual salary. This may not be enough to cover your debts, funeral costs, living expenses, and future goals for your dependents.

Supplemental life insurance can help you fill the gap between your employer’s policy and your actual needs. You can buy supplemental life insurance through your employer or from a private insurer. Some of the benefits of supplemental life insurance are:

  • You can customize your coverage amount and duration according to your needs.
  • You can choose from different types of supplemental life insurance, such as term, whole, or universal life insurance.
  • You can add riders or features that enhance your policy, such as accidental death and dismemberment (AD&D), disability income, or long-term care benefits.
  • You may be able to get lower rates or easier underwriting than buying a separate policy from the open market.

How to Buy Supplemental Life Insurance

If you are interested in buying supplemental life insurance, here are some steps you can follow:

  1. Assess your current life insurance coverage and determine how much additional coverage you need. You can use online calculators or consult a financial planner to help you with this step.
  2. Compare the options and costs of supplemental life insurance offered by your employer and by private insurers. You can use online tools or talk to an agent to get quotes and compare policies.
  3. Choose the type and amount of supplemental life insurance that suits your needs and budget. Make sure you understand the terms and conditions of the policy, such as the premium, the death benefit, the duration, the exclusions, and the portability.
  4. Apply for the supplemental life insurance policy and provide any required information or documents, such as medical records or exams. Wait for the approval and confirmation from the insurer.
  5. Review your supplemental life insurance policy periodically and update it as needed. You may need to adjust your coverage amount or duration if your life circumstances change, such as getting married, having children, buying a house, or retiring.


Supplemental life insurance is a way to increase your life insurance coverage and protect your family’s financial future. It can be purchased through your employer or from a private insurer. Before buying supplemental life insurance, you should assess your needs, compare your options, and choose the best policy for you.

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