Supplemental life insurance fills in the gaps with more coverage beyond an employer's plan at work, according to Bankrate. People may undergo medical evaluations to qualify for supplemental life insurance to ascertain the best rate that fits their medical profile. Supplemental life insurance stays with the insured person no matter where that person works.
An employer's life insurance usually pays for two or three times a person's salary. Bankrate indicates that supplemental life insurance goes beyond what an employer provides. Employer-based life insurance offers basic coverage for someone who is single, with little debt and no dependents. An employee with a spouse and children is another matter entirely, which is why some families purchase supplemental life insurance. Some employee plans have supplemental insurance for workers to buy beyond plans provided for free from companies.
Extra coverage comes with limits. Aetna explains the total life insurance benefit, which includes basic and supplemental coverage and has a predetermined payout. A person's annual income, supplemental options and terms of the policy may restrict the life insurance's payout. Life insurance offers a cash benefit to a named individual, or individuals, upon the death of the insured. Those with life insurance should contact the benefits administrator and refer to the plan's summary of coverage if there are questions regarding the policy's terms.