Employee Supplemental Term Insurance is offered to employees through their group health insurance. In addition to the life insurance built into their group plan they have the option to purchase additional coverage. Life insurance through your employer is a nice benefit, however keep in mind that when you leave your company, it usually goes away. A person needs to make sure he has enough life insurance purchased separately from group coverage to meet their needs when it is generally needed most. Most people do not plan on dying before age 80. Make sure that the life insurance you own will meet your final expense needs when your time comes, whether it is 80 or 100.
Employee supplemental term life insurance is a provision to purchase more term life insurance through your group life insurance plan. Usually the employer will pay for a certain amount of group term life on the employee and the supplemental allows the employee to purchase additional face amount at the employee cost. While group term life is a nice perk from an employer a healthy employee can purchase term life insurance on their own at a more affordable rate and they own the policy. As Ted mentioned, if you leave the company you lose your coverage. Whereas if you purchase your own term life policy no one can take that coverage away from you unless you stop paying premiums or the term expires. It is much more sound protection plan.
If you are unhealthy and cannot qualify for affordable term life insurance, then supplemental term life can be the temporary answer to a prayer of having enough life insurance protection for your loved ones. Contact an independent life insurance broker in order to properly weigh your options.
Principal Agent, Patriarch Associates,LLC, Opelika, Alabama
Employee supplemental term life insurance is coverage over and above coverage in a group life insurance plan. It is owned by the employee, not the employer, so it is portable; employee can take coverage with them when they leave the present employer. As both Tim and Ted have stated, you cannot take employee group term coverage with you; it is a perk you get as an employee of the company. Employee supplemental term is purchased by the employee without company contribution. In most cases, this coverage is also convertible to a permanent plan at a higher premium.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
Employee supplemental term life insurance is exactly what it sounds like. It's a Term life policy that the employer buys as a benefit for the employee. It's supplemental in that it isn't intended to be the "main" life insurance for the employee. That is - it's typically only about a $10,000 death benefit policy. And as a Term policy it is usually an annually renewable as long as you remain an employee. Term policies always have an expiration date.
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If you are unhealthy and cannot qualify for affordable term life insurance, then supplemental term life can be the temporary answer to a prayer of having enough life insurance protection for your loved ones. Contact an independent life insurance broker in order to properly weigh your options.