Supplemental Life Insurance: What and Who it Covers

Supplemental life insurance is purchased on top of a basic policy, perhaps provided from your employer, that expands the benefits should something happen to the insured.

What it Covers

Although a limit is placed on how high reimbursements can go, supplemental life insurance takes over when basic life insurance runs out. It provides more money to beneficiaries that can then cover higher costs related to death. Expenses, such as high mortgages or car payments, that are left behind can be taken care of with the extra reiumbursement. Also, if you leave behind unpaid loans, they can be covered. In certain cases, when dependents are used to a very high standard of living or if you provided the family with an extroadinarily high income, basic insurance will not secure normal cost of living expenses.

Who it Covers

Supplemental life insurance covers beneficiaries that are high in number. If you have a lot of dependents, basic life insurance, when split up, may not be enough to take care of everyone.

Supplemental policies are usually offered as extensions to group life insurance policies. Therefore, if you are a member of a group, such as a collection of employees, you can get supplemental life insurance to cover your specific needs.
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