All About Supplemental Life Insurance Benefits

malden solutions supplemental life insurance benefits

Supplemental benefits are meant to supplement a larger individual policy.

One of the most stressful parts of a new job (other than acing the interview and actually getting the job) is filling out all of that new hire paperwork. This is especially true if you’ve never been in a position where you were benefits eligible. Reading through all of the different options, from health insurance to life insurance to pet insurance to disability insurance and more can feel like looking at a map in a different language. It might help to know that you’re not alone in that. Even among people who have been in their jobs a while, a large portion of employees report that they don’t actually fully understand their benefits, especially life insurance. Let’s tackle the realm of supplemental life insurance benefits so you can decide if they’re right for you.

Coverage Limits

the first thing to keep in mind about employer offered supplemental life insurance benefits is that they are not meant to be a stand-alone policy. They are supplemental. Because of this, there is usually a maximum amount that you can have as your benefit payout, usually 1 or 2 years worth of your salary. This is not usually enough for most people. If you passed away today, would your family be able to make ends meet on that amount, and for how long? Probably not even a year – this is why these particular policies are intended to supplement a larger individual policy.


It Is Tied To Your Employer

The cost of the group life insurance is calculated based on the group, ie. The employees in your company who are eligible for it, and what the expected payouts are. For instance, if your job is very dangerous and everyone there risks death every day, your costs will be higher than at a tech start-up where all of the employees are under 30.


It May Or May Not Be Portable

The other thing about supplemental life insurance benefits is that it is tied to your work – if you change jobs, you lose that coverage. Some policies can be ported to new departments and employers but some cannot. Some can also be converted into individual permanent life insurance policies, which make them a much better value. If you’re deciding between your own coverage and employer offered coverage, having this portability as an option might make all the difference. 


Partner with Malden Solutions Today

Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on TwitterFacebook, and Linkedin.

This entry was posted on Friday, July 22nd, 2022 at 6:08 pm. Both comments and pings are currently closed.