Why Do I Need Supplemental Term Life?
The financial needs of your family change with the passage of time, and often these changes make your family more dependent on your income. If you need more life insurance, your present policy may include an option to purchase additional insurance through supplemental life.
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Significance
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You may require additional life insurance because you have a new addition to your family or you financed a major purchase, incurred a medical expense or must fund college education for your children should something happen to you. If you are approaching retirement age, consider whether your family will have enough money to subsist if you die.
Types
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Your present life insurance policy specifies the amount and type of supplemental life you may purchase. Depending on the policy, the amount is usually a multiplier of your salary, and the type will be universal life, whole life or term. Some plans allow you to choose the type of insurance or a combination, while others regulate the type of insurance you can add.
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Supplemental Term Insurance
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You can purchase the most insurance for the least premium with term insurance. Term insurance covers you for a prescribed term, usually 5, 10, 20 or 30 years, after which the coverage ceases. The sole object of term insurance is to provide you with a death benefit; thus, it does not build cash value.
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