Supplemental and Voluntary Life Insurance

Make Your Loved Ones Top Priority Today

What is Supplemental Life Insurance?

Supplemental Life Insurance allows you to choose Life Insurance coverage in addition to your group plan coverage at the same low group rates. This coverage is paid through convenient deductions from your paycheck.

What is Voluntary Life Insurance?

Voluntary Life Insurance allows you to choose Life Insurance coverage at group rates. This coverage is paid through convenient deductions from your paycheck.

Can You Afford Extra Coverage?

With this Supplemental or Voluntary coverage, you can take advantage of affordable group rates, rather than relying upon individual insurance which may be more expensive. Your employer is looking out for you and your family. They have made the decision to offer Supplemental or Voluntary Life Insurance coverage so that you can protect your loved ones at a reasonable cost.

What Age Should You Think About Buying Additional Life Insurance?

Most people know that those with a family and/or a mortgage need Life Insurance. However, many believe that unmarried young people who have no dependents or mortgage do not need Life Insurance. The reality is that when people die young, the surviving family may be unprepared for the shock. A Life Insurance policy may ease tension during that time by helping with unexpected expenses such as funeral fees, debts or medical bills not covered by insurance.

How Much Life Insurance Coverage Do You Need?

According to the American Council of Life Insurers’ (ACLI) 2008 consumer brochure, “What You Should Know About Buying Life Insurance”, some experts suggest your policy “...should pay a benefit equal to 7-10 times your annual income.” To evaluate your personal needs, consider whether or not your loved ones would need to pay for any of the expenses shown below plus other personal expenses. Once you add it all up, would your basic group policy provide enough? To evaluate your needs online, use the simple Life Insurance calculator at lifehappens.org

Are There Any Medical Questions or Tests Needed to Qualify for Supplemental Life Insurance?

With individual Life Insurance, the insurance company wants to make sure you are healthy because they are writing an individual policy just for you. They often require medical questions, blood tests or a visit with a nurse or physician. With group insurance, the insurance company’s risk is lower because it is based on the claims history of the entire group, rather than your personal health history. Therefore, the insurance company is often able to offer a period of time where you can purchase Supplemental or Voluntary Life Insurance without medical questions or tests. Certain conditions may apply.

When Will Coverage End?

Coverage usually ends at retirement, a specified age or if you enter the armed forces on a full time basis. Also, the amount of the benefit usually decreases as you age. Both of these will be identified in your policy. If your employment ends for a reason other than retirement, some policies contain a portability arrangement where you can choose to take the Life Insurance coverage with you. Restrictions apply, premiums and fees may be higher and you must apply for coverage and pay the first premium payment within a specified period of time following termination.

How is the Life Insurance paid to my loved ones?

Your beneficiary fills out a Life Insurance Claim Form and submits it along with other documentation, including an original or certified copy of the death certificate. After approval, they will receive the funds usually in one lump sum from the insurance carrier.

A Few Reasons Why You May Need Additional Life Insurance:

	Single person with no dependents:
		Funeral expenses

		Medical bills

		Elderly parents you may support

		Debts (credit cards, student loans)

	Single person with dependents:
		Funeral expenses

		Medical bills

		Debts (car, mortgage)

		Childcare/Caretaker fees

		Health Insurance payment

		Elderly parents you may support

		Education costs

	Couple with no dependents:
		Funeral expenses

		Medical bills

		Elderly parents you may support

		Debts (mortgage, car)

	Couple with dependents:
		Funeral expenses

		Medical bills

		Debts (car, mortgage)

		Child-rearing expenses

		Health Insurance payment

		Elderly parents you may support

		Education costs

	Older couple:
		Funeral expenses

		Medical bills

		Estate taxes

		Income for surviving spouse

		Debts (home, vacation home, recreational vehicle)

		Health Insurance payment

		Assets for children or grandchildren