{"id":54861,"date":"2023-11-17T08:43:00","date_gmt":"2023-11-17T08:43:00","guid":{"rendered":"https:\/\/kiiky.com\/wealth\/?p=54861"},"modified":"2023-11-17T09:38:07","modified_gmt":"2023-11-17T09:38:07","slug":"supplemental-life-insurance","status":"publish","type":"post","link":"https:\/\/kiiky.com\/wealth\/supplemental-life-insurance\/","title":{"rendered":"How Do You Know If You Need a Supplemental Life Insurance Policy?","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n
Supplemental life insurance, commonly called voluntary life insurance<\/a>, is an extra layer of protection offered in addition to your company’s group policy.<\/p>\n\n\n\n Many employers offer group life insurance in employee benefits packages to attract top talent and help boost their employee\u2019s financial security. Employees may either get these accessible in their benefits packages<\/a> or pay very low premiums.<\/p>\n\n\n\n However, group life insurance doesn\u2019t often offer the coverage and features necessary for employees to handle their life insurance<\/a> needs fully. Getting a supplemental life insurance policy through the employer or outside work can help address these problems. <\/p>\n\n\n\n This article will explore a few situations that may warrant purchasing a supplemental life insurance<\/a> policy.<\/p>\n\n\n\n See also: 12 Best Term Life Insurance Companies in 2022<\/a><\/p>\n\n\n\n Some situations that may demand you purchase a Supplemental Life Insurance policy include;<\/p>\n\n\n\n Many employers cap group life insurance coverage death benefits at $50,000 for tax reasons.<\/a> That\u2019s less than one year of the median household income<\/a>, according to 2021 U.S. Census data. As a result, employer group life insurance won\u2019t be enough for anyone that needs to cover more than final expenses, such as funeral costs. <\/p>\n\n\n\n For example, people may need to ensure their loved ones can pay off their mortgage, cover their child\u2019s college tuition, and set aside savings. Getting supplemental life insurance can help protect against this shortfall.<\/p>\n\n\n\n The typical group life insurance policy is rarely enough to cover dependents for very long. If it\u2019s limited to $50,000, that may only be enough to replace your yearly income or potentially less if your beneficiaries have to pay off debts. <\/p>\n\n\n\n Even if you have a partner that works, their single income may not be enough to provide comfortably for other dependents, such as children. You can solve these issues by purchasing supplemental life insurance.<\/p>\n\n\n\n Many experts recommend having a death benefit worth at least 10 times your annual salary. So, if you earn $60,000 per year, the recommendation would be to get a $600,000 death benefit. This will give your loved ones substantial time to live comfortably in your absence and plan for their financial future.<\/p>\n\n\n\nTable of contents<\/h2>
Few Situations That May Warrant Purchasing a Supplemental Life Insurance Policy.<\/span><\/h2>\n\n\n\n
1. Your employer\u2019s group life insurance doesn\u2019t offer enough coverage<\/span><\/h3>\n\n\n\n
2. You have dependents<\/span><\/h3>\n\n\n\n