What is supplemental life insurance and should I buy it through my employer?

Supplemental life insurance is additional coverage offered through an employer's benefits program beyond the basic group life insurance amount. Employees pay the additional premium directly, typically through payroll deduction, to increase their total coverage.

Employer-sponsored supplemental coverage has some attractive features: guaranteed issue amounts (where no medical underwriting is required up to a certain limit), payroll deduction convenience, and sometimes favorable group rates during open enrollment.

However, the same portability limitation applies to supplemental coverage as to basic group life. When you leave the employer, supplemental coverage ends. You may have a conversion option, but again — only within the brief conversion window.

For many employees, the comparison comes down to: is employer supplemental coverage cheaper than what I could get with individual underwriting? For younger, healthy employees, the answer is often no — individual underwriting rewards good health in ways group pricing cannot. For employees with health challenges, guaranteed issue employer supplemental coverage may be advantageous.

The most portable strategy is supplementing group coverage with individual policies from A-rated (A.M. Best) carriers that you own and control. Agents in our network can help you compare options based on your specific health profile and financial situation.