What Is Employee Supplemental Term Life Insurance?

Employee Supplemental Term Insurance a type of life insurance plan is offered to employees through their group health insurance program.

In addition to the life insurance built into their group health plan they have the option to purchase additional term life insurance coverage.

Life insurance through your employer is a good benefit: however, keep in mind that when you leave your company, your group term life insurance coverage usually goes away.

You need to make sure you have enough life insurance purchased separately from group life insurance coverage to meet your needs when it is generally needed most.

That's why it may be a good ideas to carry your own individual term life insurance policy separate from your coverage through work. That way, if you leave your job for any reason, you still have the life insurance you need to provide financial security for your family. Here's a checklist of what to consider when buying a term life insurance policy

What Does a Single Premium Life Insurance Policy Cost?

Single premium life insurance is a type of life insurance plan that you make one single payment for and then you have guaranteed life insurance coverage for your entire lifetime without having to to pay anymore money.

Because of this, the minimum premiums can be high, for instance, most single premium life insurance policies have a minimum premium of $10,000.

However, keep in mind, your coverage is guaranteed for the your entire lifetime, and you pay no more money.

So, for instance, someone age 35 may be able to buy up to $50,000 of single premium whole life insurance for $10,000. What this means is you have paid $10,000 so that your beneficiary will receive $50,000 tax-free upon your death.

That's a guaranteed payout of 5 times on your money without any taxes. So, some may consider this a good bet.

And, single premium whole life insurance policies may build up cash value inside your policy over time, from which you may take a loan if needed.

Here's how you can learn more about single premium life insurance and request your free quote today.

What Is An Accelerated Death Benefit On a Life Insurance Policy?

An accelerated death benefit for life insurance is a rider on a life insurance policy that adds coverage to pay out an accelerated benefit while you are alive if you meet the requirements. There's usually no charge for this additional coverage.

The life insurance rider for accelerated benefits states that if you became terminally ill, you can get access to a portion of your life insurance proceeds prior to your death to help pay for certain things such as your medical bills.

The percentage of the face amount of life insurance on your policy that is allowed and the number of months the carrier will allow for the diagnosis of being terminally ill will vary by insurance company.

Generally the accelerated benefit is up to 25% of the face amount of your life insurance and either 6 or 12 months of remaining life expectancy.

Learn more about accelerated death benefit for life insurance.

What is a Term Life Insurance Policy?

What is term life insurance coverage and how does term life work?

A term life policy offers you temporary life insurance protection for a set number of years.

Most term life plans offer coverage for a period of 10, 15, 20 or 30 years.

If you die during the term of your term life policy, your beneficiary receives the death benefit.

If you outlive the term of your term life policy, your life insurance coverage ends.

Term life is the lowest cost life insurance because it is temporary, and does not build up any cash value inside the policy.

Remember, you may be able to purchase a new term life insurance policy when your first plan expires. However, your new rate will be based on your age and health at that time, as well as, the amount of life insurance and duration of the term.

You can also own more than one life insurance policy. You may choose to buy term life insurance for your short term needs of 30 years or less, and buy a whole life insurance policy for your lifetime life insurance needs.

How Much Money Do You Get From Life Insurance?

If you are the owner of the life insurance policy, you are able choose the amount of life insurance that you want to go to your beneficiary upon your death.

It is called the face amount of the life insurance policy. When paid out, it is called the death benefit.

As the owner of the policy, you do not get anything from your life insurance policy unless you have a Whole Life or Universal Life plan, from which you can take cash value as a loan (if there is cash value inside the policy) or surrender; or Return of Premium Term Life Insurance, which pays back almost all of the premiums you paid for your policy, if you live past the end of the term for tour term life plan.

If the life insurance is for $500,000 of coverage, the insurance carrier pays out a $500,000 death benefit to the beneficiary when the insured dies, free from income tax.

If you have permanent life insurance coverage with cash value and there's a loan on the policy, the insurance carrier will take out the loan amount and any interest to be paid the insurance company from the proceeds payout, and give the balance to the beneficiary.

Learn more about life insurance terms and how life insurance works

Is There Life Insurance For Elderly People?

Yes, there is life insurance for elderly people. A number of No Exam, Final Expense life insurance policies can be purchased by persons up to age 80 or 85.

There is quite a bit of leniency on any health questions about applicants for these no exam life insurance policies, but it is possible to be declined by some that do not offer guaranteed acceptance.

The maximum face amount of life insurance coverage offered is usually $25,000 for this type of life insurance policy, although some come in higher face amounts of coverage available.

Persons up to age 90 may be able to apply for life insurance that requires a medical examination and health records. These are harder to get but for an elderly person with relatively good health, it is possible to get this type of life insurance policy. Here, the minimum face amount is usually over $25,000 and the only maximum limit is what the applicant is able to afford to pay for the policy.

Why Would Children Need Life Insurance?

We have two young children and have heard about life insurance plans for children.

But, why would a child need life insurance coverage?

When it comes to purchasing a life insurance plan for your child, there are several benefits you may want to consider, as they would provide a form of financial security for your child's future.

The benefits of child life insurance plans may include the following:

1. Guaranteed lifetime life insurance protection.
2. Guaranteed level premiums that will never increase.
3. The option of adding additional life insurance coverage when reaching adulthood.
4. It builds cash value from which your child may take a loan.
5. It provides funds for final expenses.

Also, keep in mind, today there are so many children that develop health issues like diabetes, or become overweight, and may find it difficult to qualify for affordable life insurance coverage later in life when she needs it to provide financial security for her own family.

Here's how you can learn more about childrens life insurance plans