Supplemental insurance can provide a lump sum payout to beneficiaries when you pass away and may offer living benefits like cash value that you can use for living expenses and additional coverage if you have a tragic accident. This extra coverage can provide a wider safety net for your loved ones when they are taking care of your final living costs and after-death expenses.
Supplemental life insurance is worthwhile if you financially support a spouse, children or other dependents and need more coverage than what a basic policy from your employer offers. Basic life insurance policies may provide coverage worth one to two years of your annual salary, which might not be enough to handle personal and household affairs after you die.
Supplemental life insurance differs from primary or basic life insurance in that it can provide a greater death benefit plus coverage for accidents and other family members. You can purchase additional coverage through your employer or another company.
The payout from supplemental life insurance can cover the cost of your funeral, outstanding college loans or living expenses for beneficiaries in the event of your death. Optional supplemental life insurance benefits, like living benefits or coverage for accidental death and dismemberment, can offer additional coverage if an unexpected event makes you unable to work.
