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The Curious Bag
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Basic term life insurance coverage does not provide the complete coverage a family might need following the death of a loved one. Supplemental term life insurance provides coverage for expenses that are not covered under a basic term life policy.
Coverage for Additional Expenses
A supplemental term life policy can provide coverage for unpaid medical bills, attorney fees, credit balances, taxes and housing expenses. It also can provide income replacement to family members upon the death of an insured.
Premium Waiver
If the holder of a supplemental term life insurance becomes disabled before the age of 65, the insurance company will maintain the policy until she reaches that age. If the disability lasts indefinitely, no further premium payments will be collected.
Accelerated Living Benefit
Supplemental life insurance might offer an accelerated living benefit option, which provides payment to an insured diagnosed with a terminal illness. The payment is a percentage of the combined basic term and supplemental term policies and is typically paid in a lump sum.
Portability
For an additional rate, a policy can include a portability option, which allows an insured to continue coverage if he changes jobs.
Conversion
When the insured retires or terminates employment, a supplemental term life insurance policy may be converted to a term life policy.
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