What does supplemental life insurance mean.?

Question

What does supplemental life insurance mean.?

Answer 1

Supplemental means, additional.  Life insurance means, if you die.

Normally, it's a salesman's way to sell you a small, really expensive policy.

Answer 2

Supplemental life is a term usually used in marketing small whole or Universal life policies through payroll deduction.

I say small because these are usually sold by the dollar amount someone wants to spend such as $5.00 per week

Usually through unions or large employer groups like schools. It is referred to as supplemental because they are selling small cash valued policies that are usually not large enough to provide someone with all their life insurance needs. Plus these employees are often covered by a life insurance policy that the employer provides at no cost.

The idea behind these policies is that since the employee will loose the employer provided life policy upon retiring or changing jobs at least they will have a small life policy that they can take with them when they leave employment.

Aflac, Colonial and American Heritage Life are the leaders in this type of insurance.

Answer 3

There is no supplemental life, someone may be just calling a life policy that as a means of trying to sell it to you. It could refer to a accident policy that would only cover you and pay out if you die as a result of an accident. Other than that, I know of no supplemental life insurance, there are plenty of supplemental health insurance carriers out here though.