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  • Writer's pictureCharlotte Burr

Supplemental Life Insurance Explained

Life insurance is a critical component of financial planning, providing peace of mind and financial protection for your loved ones. While many people have basic life insurance through their employers, supplemental life insurance is an option worth considering for those who need additional coverage. But what exactly is supplemental life insurance, and how can it benefit you?

What is Supplemental Life Insurance?

Supplemental life insurance is additional coverage that you can purchase on top of your existing life insurance policy. This type of insurance is designed to fill the gaps left by your primary policy, ensuring that your beneficiaries receive adequate financial support in the event of your untimely death.

Why Consider Supplemental Life Insurance?

  1. Increased Coverage: Employer-provided life insurance often covers only a portion of your salary, typically one or two times your annual earnings. Supplemental life insurance allows you to increase this amount, providing more substantial financial protection for your family.

  2. Customizable Plans: Unlike basic policies, supplemental life insurance offers more flexibility. You can choose the amount of coverage that fits your specific needs, ensuring that your family can maintain their standard of living, pay off debts, and cover education costs.

  3. Portability: One of the significant advantages of supplemental life insurance is that it can be portable. This means that if you change jobs or lose your employment, you may have the option to keep your coverage, ensuring continuous protection.

  4. Additional Benefits: Some supplemental policies come with added benefits, such as accelerated death benefits, which allow you to access a portion of your policy's payout if you're diagnosed with a terminal illness. This can provide critical financial support during a challenging time.

Is Supplemental Life Insurance Right for You?

Deciding whether to purchase supplemental life insurance depends on your individual circumstances. If your current life insurance policy does not fully cover your family’s needs, or if you have significant debts, a mortgage, or young children who will require financial support, supplemental life insurance might be a wise investment.

It’s also essential to consider your overall financial situation. While supplemental life insurance can provide valuable additional coverage, it’s important to balance this with other financial priorities such as saving for retirement, building an emergency fund, and paying debts.

Over at the AZ Insurance Team we take into account all the crazy circumstances that life brings. We will never sell you something that does not fit into your life and future plans. We pride ourselves on finding the best policy for all of our customers for over a decade. If you have any more questions please contact us at the AZ Insurance Team!

Independent insurance brokerage located in Tempe, AZ. We offer auto insurance, homeowners insurance, life insurance, renters insurance, commercial insurance…

Disclaimer: Coverage will vary on state, insurance company, and type of policy.

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