What is Supplemental Life Insurance?

Unlike most supplemental plans, supplemental life insurance takes a different approach to coverage. Many of Aflac’s supplemental policies help support holes not covered by primary health insurance. However, supplemental life insurance refers to the ability to build more coverage into your life insurance plan. Read on to learn more about what supplemental life insurance is and the types of benefits available.

What is a Supplemental Life Insurance Plan?

Supplemental life insurance can add protection to the life insurance plan you already have. This type of coverage adds extra support that can come in handy if your current life insurance policy doesn’t cover enough or if you want specific benefits.

The main goal of obtaining a life insurance policy is to help protect your family in the event of a loss. However, a primary life insurance policy may not provide all the protection they need. Some companies offer you the option to add on extra coverage for your family, or you can get supplemental life insurance through a private insurance company.

Essentially, supplemental life insurance can provide extra support for your loved ones if you pass away unexpectedly.

Types of Supplemental Life Insurance

Supplemental life insurance makes sense if you are hoping to expand your coverage beyond your own life. There are a few instances where some type of supplemental support can strengthen the benefits of a life insurance plan.

This type of coverage exists to help provide extra protection around accidents, funerals, and family support. You may be able to find specific supplemental solutions that fit your unique needs.

Accidental Death and Dismemberment Insurance

In some supplemental life insurance plans, you have the option to add coverage in the event of accidental death. This type of add-on rider can provide extra benefits if you were to pass suddenly due to an unintentional death or dismemberment.¹ Accidental death and dismemberment insurance can be helpful because many families may not be financially prepared for the sudden loss of a loved one.

Each company takes a different approach to this type of coverage. It’s important to read the fine print of the policy you are considering in order to make an informed decision. Alternatively, Aflac offers accident insurance that pays benefits for a variety of covered accidents.

Supplemental Child Life Insurance

You may have the ability to add on coverage to help protect your children, acting as supplemental child term life insurance. This type of add-on can provide coverage if the child dies before a certain age.² In some spaces, it can also be referred to as juvenile life insurance. This type of coverage may help provide solace in a destabilizing time.

Supplemental Spouse Insurance

In some cases, you can purchase additional coverage for your spouse. This can be referred to as supplemental spouse life insurance. This type of add-on can work with different types of policies, like term and whole life insurance.

The benefits you’ll receive from this type of supplemental life insurance depend on the coverage you choose. In some cases, a spousal/domestic insurance plans offer coverage to your partner, which is a percentage of the primary policyholder’s plan.³

Joint Life Insurance

Joint life insurance is another option for dual-income married couples or business partners with an insurable interest. In some joint policies, the death benefit won’t be paid out until both partners pass away. This is usually called “second to die” policy. Another option is having benefits that can be accessed when the first person dies, which is referred to as “first to die” policy. This is a popular choice for high-earning families, as it may have certain tax benefits.⁴ This type of plan is not available at all insurance companies, so we recommend doing your research before obtaining this type of policy.

Burial Insurance

The cost of burying a loved one shouldn’t be a financial stressor amidst a painful loss. However, funeral prices can get expensive. Burial insurance is a type of supplemental life insurance that helps cover burial expenses for the policyholder.⁵ This may be particularly helpful for the surviving spouse. This type of benefit is not currently offered at Aflac, but there are other supplemental options worth visiting.

Is Supplemental Life Insurance Worth It?

Supplemental life insurance has many benefits that can help you and your loved ones. It may be worth it to seek supplemental life insurance if your existing coverage doesn’t meet all of your specific needs, or if it won’t provide your loved ones with enough support in the event of your passing. Supplemental life insurance can also be a good option if you need a plan that will still cover you if you change jobs. Whether you are looking at plans with a private insurance company or supplemental life insurance options offered through your employer, consider the different types of coverage available so that you can find a plan that works best for your family’s needs.