family. But are you eligible for this supplemental life insurance? Find out.The article covers
What is supplemental life insurance?
Features of supplemental life insurance
Benefits of supplemental life insurance
Tips on supplement life insurance
Supplemental Life Insurance is otherwise referred as additional insurance policy. A person who takes a supplemental insurance policy is eligible to get extra coverage. The extra coverage which he enjoys can be few or multiple times more than the actual policy. Such coverage depends on factors like the insurance amount of your actual policy. However the additional coverage cannot extend beyond a prescribed limit which again varies from policy to policy. The aim is to supplement life insurance.
The concept of life insurance teaches that the insured's family and dependents are protected even after his death. Any individual takes a life insurance policy with this main objective. However the coverage in a single life insurance policy is not practically sufficient to meet all the needs especially when the dependents are large in number and the financial commitments are so high.
At times the dependents may have to sell the family property to settle a loan or if they don't have one they must make use of the proceeds received from the insurer. This rarely leaves them with enough money to run their lives smoothly thereafter. Supplementary or additional life insurance aims to overcome this limitation by providing additional coverage as long as a person can afford to pay and such payments don't exceed the maximum amount or fall below the minimum amount prescribed in the policy. The relevant details can be found in online life insurance policies.
Features of Supplemental Life Insurance
Some of the features of this policy are as follows
Flexible Options
The insured can choose the amount of coverage as per his desire. This applies for additional insurance policies taken in all forms of insurance like permanent, term, whole and universal. However insurance companies allow for additional coverage in group insurance policies taken by the employer. For the other forms of insurance it varies from company to company.
Proof
When you choose Supplemental insurance policies you are also given the flexibility of changing the amount of coverage. Whenever you want to insure for a very high amount you need to provide authenticated evidence and documentary proofs to establish that you are able to pay such an amount. This proof is referred as evidence of insurability.
Benefits of Supplemental Life Insurance
Some of the benefits of this policy are as follows
Reduces Procedural Delays
As said earlier most companies allow you to take additional insurance policies if you are covered in a group insurance scheme offered by your employer. In such circumstances it becomes very easy for you to obtain evidence of insurability. Since this comes under the purview of corporate schemes you will not be required to comply with many formalities in the course of obtaining the additional insurance. If asked your employer will also provide the reference certifying your credibility. This will make things easy both for you and the insurer.
Extra Protection
This main objective of this policy is to offer extra protection. When you take an insurance policy there are lots of chances that you may not continue it due to several reasons. Many of them surrender the policy in the midway due to financial commitments or inability to pay the premiums. This defeats the very objective of opting for an insurance policy.
With a supplemental insurance policy you ensure that your and your family is given extra protection. It is not hard or doesn't take much to discontinue or surrender when you take one insurance policy. Having planned to take up additional insurance policy shows that you have made all alternate arrangements and will not discontinue or surrender the policy till it matures or before you die.
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