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Purchasing Supplemental Life Insurance: Coverage for New Life Events

One out of every two Americans say they need more life insurance.1 Have you looked at your current lifestyle and thought about how to financially help your family? If you have coverage, it may not be enough to fully protect your family after you’re gone. To better secure your family’s financial future, you may want to consider purchasing supplemental life insurance.What is supplemental life insurance?

What is supplemental life insurance?

Supplemental life insurance is an additional life insurance policy that offers extra protection and added peace of mind. A supplemental policy works the same way as most types of life insurance: You choose a coverage amount to purchase; make regular payments on the premium, and your beneficiary can receive a cash benefit when you pass away.

When thinking about how much added coverage to purchase, consider what amount will be enough to help your family pay bills, debts or other expenses that may not be covered by other financial resources or an existing life insurance policy. Common examples include funeral costs, mortgage or rent, and living expenses. Compare your family’s total expenses with the total income they will have when you’re no longer with them. If you find a gap between the two — consider purchasing additional life insurance to help cover these costs.

Here are some other reasons why you might need supplemental life insurance:

Your needs have changed Icon Needs have changed: New family circumstances such as caring for a family member or a new child or grandchild may create new expenses.
Insurance coverage Icon A job change, retirement, or insufficient coverage through an employer: Perhaps your coverage from an employer-sponsored policy will end. Or, it may not be enough to meet your family’s changing needs.
Inflation Icon Inflation: A dollar amount that seemed adequate 25 or 30 years ago may not go as far today. And since inflation can diminish the buying power of your current life insurance benefit, it’s important to review your coverage periodically to ensure your family has the full protection they may need.

Supplemental life insurance can be affordable.

You can supplement your current policy with many different types of life insurance. If you have short-term needs, you may opt for a term life insurance policy that can last until those needs come to an end. If you have longer term needs or want to help provide for living expenses you may choose whole life insurance, also known as permanent life insurance, for coverage that can last your entire life. You can even divide coverage between both types of policies.

In some cases, you may be able to purchase affordable life insurance without undergoing a medical exam. Even if you’re over 50 years old, there’s a good chance you can find a policy with the right combination of an affordable monthly premium and a life insurance benefit to supplement your current coverage.

Many insurance companies offer free information, online quotes and even allow you to apply online or directly by mail in just a few minutes. Regardless of the type of policy you choose, it’s important to select a life insurance provider that you can trust. Be sure to choose a stable company with strong financial strength ratings that you can count on now, and in the future.

1 Source: Trends in Life Insurance Ownership, 2010 study by LIMRA (the Life Insurance Management Research Association, in Windsor, CT), a nonprofit research organization that studies the life insurance industry and monitors its trends.

This article is provided by New York Life Insurance Company for informational purposes only. This article is not intended to provide tax, legal, financial, or accounting advice. Please consult your own professional for advice specific to your circumstances.

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