Supplemental life insurance is a type of life insurance that is offered as an additional benefit to employees through their employer. It is designed to provide coverage over and above the employer’s basic life insurance policy, or for employees who are not covered under the employer’s basic plan.
Supplemental life insurance policies typically allow employees to choose the amount of coverage they want, which can range from a few thousand dollars to several million dollars. The cost of the coverage will depend on the amount of coverage selected, the employee’s age, and other factors such as the employee’s overall health.
Employees typically pay for the coverage through payroll deductions and the premium payments are usually made on a monthly or bi-weekly basis.
Some employers offer a basic level of coverage as part of their employee benefits package and allow employees to purchase additional coverage at their own expense. The coverage offered through the employer is typically less expensive than if the employee were to purchase the coverage on their own, as the employer is able to negotiate rates with the insurance company.
It’s important to note that supplemental life insurance is different from group life insurance, which is provided by the employer as a benefit to all employees and typically paid for by the employer.
