What is Supplemental Life Insurance?

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 child term rider can 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 sometimes called a "second-to-die" or a "survivorship life insurance" 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.

Final Expense Whole Life Insurance

Final Expense life insurance (sometimes referred to as burial insurance) is a type of whole life insurance policy that is designed to help loved ones prepare for the costs that come in the final stage of life. Final expense life insurance is typically less expensive than traditional life insurance as it has lower face amounts, usually not exceeding $50,000. This type of insurance does not typically require a medical exam since coverage is issued based on the applicant's answers to a health questionnaire. The funds from a final expense policy can be used to cover out-of-pocket medical expenses, legal and accounting costs for the individual or estate and for funeral and burial expenses.

How much supplemental life insurance do I need?

The amount of supplemental life insurance you need may depend on factors such as how many dependents you have, your debts, and how long you need coverage. For instance, if you want coverage for a few years until your children become adults, supplemental term life insurance may be right for you. Consider the financial needs of your spouse or partner, children, parents, or other family members when deciding how much supplemental life insurance you should get.

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 spouse or other family members 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.

Aflac offers supplemental life insurance

Supplemental life insurance can help you get the additional coverage you and your loved ones need. Whether you are looking for a supplemental policy for yourself, your children, your spouse, or your employees, Aflac has options. For some, supplemental life insurance offered through their employers is beneficial, but burial insurance may be more of a priority for others. Chat with an Aflac agent today to see how we can help improve your life insurance plan or create a new one.