What You Need to Know about Supplemental Life Insurance
You probably already know that purchasing a life insurance policy is a smart move. Now, let's talk about supplemental life insurance. It's something that you might need to add to your insurance policies to make your life complete. The following is a comprehensive guide that will provide you with the ins and outs of supplemental life insurance. Look through it and use it to decide how to choose the right policy for yourself and your family.
The key term to understand here is "supplemental." Supplemental life insurance is a policy that's supposed to be used in conjunction with a good life insurance policy. It's meant to be a backup or an extra financial support system for you and your family members if a crisis occurs. It's something that you should consider when you're choosing a family life insurance policy. Your goal should be to have every aspect of your family life protected so that all its members will feel safe and secure if there ever comes a time when you aren't there. A supplemental life insurance policy might be exactly what you need to achieve that goal.
Examples of Supplemental Life Insurance
You have a variety of options from which you may choose a supplemental life insurance policy. The type of policy you choose will depend on where you purchase it. You can get a regular term or whole policy that supplements the basic policy you receive from your employer.
Accidental Death and Dismemberment insurance is another version of supplemental life insurance in which you may have an interest. It covers your accidental death or dismemberment from an accident. This type of insurance would pay out to your remaining family members in the case of your demise. It would pay benefits to you if you remain alive but have lost your sense of sight, speech, or hearing. It will also cover you if you lose a limb.
AD&D coverage has many limitations on it, however. Therefore, it is not an acceptable form of term life insurance. It's only meant to be an addition to the main insurance policy. You should always have someone explain the fine details of such a policy before you purchase it. AD&D policies have a lot of fine print included in them, and they cover highly unlikely events.
Another type of supplemental life insurance that many people invest in is final expense insurance. Final expense insurance is a separate policy that covers the final medical bills and funeral and burial expenses. Many people invest in these policies so that their family members can get the full benefits of the main life insurance policy upon the insured party's passing. Funerals can cost as little as $5,000 and as much as $10,000 or more. Final medical bills can be tens of thousands of dollars, depending on why the insured party was in the hospital at the time of death. It's something to consider if you want to maximize your family's benefits.
A child life insurance policy is another type of supplemental policy that might interest you. You can buy a policy for a dependent child that has a savings account and a cash value attached to it. The cash value will grow over time, and you can transfer the funds to your child when the child reaches maturity. The most interesting part of this type of policy is that you can borrow against it if you so desire. Your contributions to the policy will not count as income until you withdraw the funds.
You may also want to invest in a short-term or long-term disability insurance policy to supplement your life insurance. Such policies will pay you a portion of your regular work wages if you're unable to work because of an illness or injury. The difference between short-term disability and long-term disability is the amount of time you can receive benefits if you ever have to file a claim. A short-term disability policy will usually pay you out for no longer than six months. A long-term disability policy can assist you for a year or longer.
Why Should You Buy Supplemental Life Insurance?
There are many reasons for you do consider investing in a supplemental life insurance policy when you conduct a life insurance comparison. Some of the most common reasons to purchase such a policy are:
Your Work Policy May not Be Enough
One reason that many people invest in supplemental life insurance policies is that the policy they obtain from their employer doesn't provide them with enough coverage. Your work life insurance many only cover your beneficiaries for a value equal to one year of your work salary. There may also be a cap on your life insurance payout due to the insurance company not requiring a physical. For example, you may only qualify for $50,000 of coverage, and the entity may require medical examinations for a higher amount of coverage. A supplemental policy might be the perfect solution to this problem.
To Cover Funeral Expenses
As previously mentioned, you might want to have a separate insurance policy to pay for your funeral expenses and final medical expenses. A supplemental policy is the perfect tool to use to achieve that.
To Give Yourself Peace of Mind
Maybe you just want to have peace of mind knowing that your family will be well taken care of if anything happens to you. Therefore, you want to give them an extra layer of financial security. There's nothing wrong with making sure that all your loved ones are taken care of. In fact, it's a very noble thing to do.
A Savings Vehicle
A supplemental life insurance policy can provide a savings vehicle for you that you can borrow against once the cash value rises. That's something you might want to think about if you really want to boost your confidence and security.
It Can Protect a Child Who Has a Medical Issue
Another reason that you may want to invest in a supplemental life insurance policy is that you might have a child who has medical issues. You can set that child up to qualify for a regular insurance policy by investing in a child life insurance policy now. It can be a way to ensure that your child has the financial products that he or she needs in the upcoming years.
How Can Supplemental Life Insurance Benefit You?
Supplemental life insurance can ensure that you have all of your bases covered. You invest in your family's future when you invest in life insurance. You don't ever want to short your family when it comes to protection. We recommend that you talk to a life insurance specialist about the coverage for that reason.
How Much Supplemental Life Insurance Should You Get?
Ultimately, the decision is yours as to the amount of supplemental insurance you purchase. It depends on the budget you have set right now and the costs for the insurance. You must sit down and calculate your disposable income to figure out how much you can spare for the extra life insurance. Once you reach that conclusion, you can compare policies to see which policy will give you the most coverage for the rate you can pay. You should always compare at least three providers before you make a purchase. That way, you'll know that you're making the best choice.
How Do You Get Supplemental Life Insurance?
Most people obtain supplemental life insurance through their employer's offerings. Employers often allow their workers to add extra insurance coverage to their policies. You can buy a policy through your employer if you're currently employed. You will need to log into your benefits portal and choose a package for yourself. You may have the option to add insurance that can pay an additional year's worth of salary or more.
Another way to get supplemental life insurance is to go through a marketplace, agent, broker, or private entity. Brokers are people who can help you by comparing the different policies that are out there for you. Agents usually work for a single entity. Marketplaces are usually linked to certain providers and push their products and services more than others. There's also a third option, such as using the Goalry Mall to find the best insurance policy for your needs. We'll talk about it later down the line. The Goalry Mall is a new concept we've developed to help our clients find the insurance policies and financial products they need and deserve.
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Who Qualifies for Supplemental Life Insurance?
Almost any adult can qualify for supplemental life insurance. The problem that sometimes arises is that insurance companies cap the coverage amount. To qualify for a greater level of coverage, an individual may have to take a medical exam and answer a series of questions that pertain to his or her lifestyle. Usually, life insurance companies want to know if the individual has any severe illnesses, mental illnesses, or a history of alcohol use or nicotine use. These things are important because they can change the rate of the premium. They may also cause an individual to be denied insurance.
Can You Get Supplemental Life Insurance From Work?
You can definitely get supplemental and regular life insurance policies through your employer. It's one of the perks of working a corporate job. Some major companies still offer decent benefits to their workers so that their families will be taken care of if anything happens to them.
Work Supplemental Policy Versus Open Market Policy
There are a few differences between supplemental policies you get from your workplace and supplemental policies you get from private companies. Usually, private companies provide a wider selection of insurance options that you can choose from. All the above-mentioned supplemental policies will most likely be found through a private insurance company.
It's highly likely that a policy from a private company will also give you access to much more coverage than your employer's policy will. Your employer's policy may give you $25,000 to $50,000 worth of coverage, for example. A regular policy may give you access to much more. You may be able to purchase several hundreds of thousands of dollars worth of coverage, for example. You'll enjoy the benefit of not having to split a small amount between several beneficiaries if something happens to you.
There are a few benefits to an employer-given supplemental life insurance policy, however. Your policy premium may be $0, for example. Some employers give their workers free insurance coverage from the first day they qualify for coverage. You may also have a much lower premium through your employer than you would have to pay a private company. That's because your employer might be supplementing part of your premium. The downside to that is that you will lose the subsidy once you no longer work for that employer.
How Much Does It Cost for Supplemental Life Insurance?
There are no quick answers to how much you will have to pay for supplemental life insurance. That will depend on the amount of coverage you choose. Other variables will factor into the amount of money you'll have to pay for your coverage. Factors such as your age, health, and lifestyle will matter. The area in which you live might make a difference when it comes to your insurance coverage, as well. Something else that might make a difference is whether you drink alcoholic beverages. The provider may consider all of those factors before approving you for a policy and calculating your price. So you see, we can't just give you a definitive figure and tell you how much you'll have to pay. You won't know until you speak to a professional who can give you such a price.
What to Consider Before Buying a Supplemental Life Insurance Policy
You'll need to consider a few factors before you invest your money into a supplemental life insurance policy. One thing you'll need to consider is your existing coverage. You'll need to think about the limitations of your current coverage and the gaps you'll need to bridge with the new policy. You'll also need to consider your budget and how much you're willing to spend on the supplemental policy. You may want to do a quick calculation of your disposable income so that you can make the right choices in this matter. Furthermore, You'll need to consider the company you choose to work with when you obtain your supplemental policy.
You should do some research if you're going to go the way of a private company. Don't make this choice lightly. Compare at least three providers so that you know you're going with a reputable company that is not going to give you a ton of excuses when it comes time to collect. Review each providers' website to see information about their experience, accolades, and creditability. Read consumer reviews to see how other people felt about them. Lastly, you'll need to contact the establishment and talk to a live operator who can discuss the matter with you. You'll be able to tell a lot about the provider's level of customer service.
We're Here to Assist You
You should now know all you need to know about supplemental life insurance and its purpose in your life. You can feel free to contact us for any reason, however. We're in business to ensure that you and other debtors like yourself have enough coverage to last for generations. You can also use our services if you need assistance finding some loans and various types of credit. We're not a lender, but we have connections with many reputable ones.
The Goalry Mall
We're a powerhouse of information and connections to personal finances. In fact, we're now offering our clients connections to a variety of financial products and services through our Goalry Mall. The Goalry Mall is an app that's set up like a shopping mall. The third floor has all the relevant "stores" you can visit according to your financial needs. The mall has a store for insurance needs, credit card needs, debt needs, real estate-related needs and more.
Goalry Can Help With Your Insurance Needs
We encourage you to sign up for access to the stores in our Goalry Mall. The signup is completely free. All you need to do is request a member ID that will give you access to any store in the Goalry Mall you want to enter. There are also three floors in the Goalry Mall that you can visit if you want to. The third floor has all the stores on it. The second floor is the educational floor, where you can learn about any personal finance topic you need to learn about. The first floor is the social floor, where you will meet people who have the same mission you have. You can share ideas and strategies with these persons if you so desire.
Take a few minutes to visit the Goalry Mall to see how it works. You'll be glad you signed up. Goalry can be your one-stop-shop for all of your personal finance needs, and you can come out of the experience as a true winner.