Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
Video Transcript: What is supplemental life insurance? Supplemental life insurance can be extra insurance that you have above and beyond either your group plan at work or individually-purchased life insurance. If you purchased this and you need more, some people look at supplemental life insurance to augment what they already have.
You may want to look at this in 2 ways" 'Would I like to have more coverage or would I like to have a supplemental retirement income plan, an extra cash value contract, that can generate withdrawals to basis and policy loans to gain tax-free, as long as I keep the policy in force for the life of the policy insured?' If I'm looking at it as a supplemental income play or I'm looking at it as a supplemental death benefit, supplemental life insurance can be a great adjunct to what I already have, either by group or by my individual purchase.
Supplemental life insurance is optional life insurance offered to employees beyond the amount provided to them by their employer. While group plans do not have medical requirements for life insurance, when you purchase supplemental life insurance through your group plan, there will be medical underwriting involved. If you are ineligible for supplemental life insurance through your employer's plan, you still should be able to buy some type of life insurance in the private market.
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You may want to look at this in 2 ways" 'Would I like to have more coverage or would I like to have a supplemental retirement income plan, an extra cash value contract, that can generate withdrawals to basis and policy loans to gain tax-free, as long as I keep the policy in force for the life of the policy insured?' If I'm looking at it as a supplemental income play or I'm looking at it as a supplemental death benefit, supplemental life insurance can be a great adjunct to what I already have, either by group or by my individual purchase.