Supplemental life insurance refers to additional coverage purchased beyond your employer-provided group life insurance policy. It can be obtained either through your employer's group plan (if additional coverage is offered) or through an individual policy purchased independently. The cost varies based on which route you choose, with individual policies often providing better value for healthy applicants.
Employer-supplemental group coverage typically costs illustrative rates that increase with age, often in 5-year age brackets: Age 30-34: $0.10 to $0.20 per $1,000 of monthly coverage. Age 40-44: $0.15 to $0.35 per $1,000. Age 50-54: $0.30 to $0.70 per $1,000. Age 60-64: $0.80 to $1.50 per $1,000. These rates translate to illustrative monthly costs of $50 to $250 for $250,000 in supplemental coverage, depending on age. Group supplemental coverage may be available with limited or no medical underwriting.
Individual supplemental coverage through a separate term policy often provides better rates for healthy applicants, portability (not tied to employment), and level premiums (no age-bracket increases). A healthy 40-year-old non-smoker might pay an illustrative $25 to $40/month for a $250,000 individual 20-year term policy, potentially less than the same amount through an employer group plan.
The best approach depends on your health status, age, and how long you plan to remain with your employer. If you can qualify for favorable individual rates, an individual policy often provides better value and portability. If you have health conditions that make individual underwriting challenging, employer supplemental coverage with limited underwriting may be the more accessible option. A licensed agent in our network can compare both approaches for your situation. All figures are illustrative; actual premiums vary by carrier and individual underwriting.