Supplemental Life Insurance
Supplemental life insurance allows employees to purchase additional coverage beyond the employer-paid basic benefit, through the employer's group plan.
Supplemental Life Insurance
Employees pay the premium through payroll deduction, and the benefit is portable in many plans when employment ends.
What You Need to Know About Supplemental Life Insurance
Voluntary Employee-Paid Coverage
Supplemental life is employee-paid, premiums come out of the employee's paycheck. Employees enroll through the group plan, with guaranteed issue up to a specified amount and without medical underwriting.
Guaranteed Issue Limits
Most supplemental life plans offer guaranteed issue up to a specified amount, commonly 3–5 times salary or a flat dollar maximum. Coverage above this threshold requires evidence of insurability (medical underwriting), and approval is not guaranteed.
Spouse and Dependent Coverage
Many supplemental life plans allow employees to purchase coverage for spouses and dependent children as well. Spouse coverage is typically available in flat amounts with its own guaranteed issue limit; dependent child coverage is usually a flat amount for all children.