Posted by As married couples who are seeking life insurance, one of your best bets is spouse supplemental life insurance. This is because this insurance provides various benefits to couples, as well as security and safety for their finances.
Spouse supplementary life insurance is not well-known compared to other types of life insurance. So, in this comprehensive article, we will be providing you with every vital piece of information concerning this insurance policy. Stay tuned.
To start with, let’s give you an in-depth understanding of what this insurance is all about.
What is Spouse Supplemental Life Insurance?
Spouse supplemental life insurance is a type of life insurance policy that provides coverage for your spouse in addition to your policy. It is also known as spousal life insurance or a spousal rider.
With this insurance policy, the death benefit is paid out to your spouse in the event of your death. Spousal life insurance is very important for families who want to ensure that their loved ones are well taken care of in the event of a tragedy.
Benefits of Spouse Supplemental Life Insurance
The following are the benefits that come with purchasing spousal supplementary life insurance:
- Financial security for your spouse
- Additional coverage for your family
- Tax advantages
- Peace of mind
- Flexibility.
1. Financial Security For Your Spouse
In an everyday scenario, your spouse will likely need financial support to cover expenses like housing, food, utilities, etc., if something happens to you.
But with this policy, your spouse doesn’t have to worry about that financial burden or even how to make ends meet.
2. Additional Coverage For Your Family
Spouse supplemental life insurance provides extra protection for your family so that they can maintain their standard of living and also cover their expenses, such as college tuition, medical bills, etc.
It’s common sense that having a life insurance policy that covers only yourself will not be enough to protect your family if something happens to you.
3. Tax Advantages
Life insurance policies are generally tax-free, and spouse-supplemental life insurance can help you take advantage of those tax benefits.
The death benefit can help your family pay for expenses and also provide income replacement without incurring taxes on the proceeds.
4. Peace Of Mind
Knowing that your spouse and family are financially protected in case of an unexpected event can give you peace of mind and help you focus on other things in life.
Spouse supplemental life insurance can provide that peace of mind and help you feel more secure when it comes to your financial dealings.
5. Flexibility
This insurance can be tailored to your specific needs and budget. It will enable you to choose the coverage amount and term that will be most suitable for you.
This also allows you to customize your policy to fit your financial situation and goals.
Types of Spouse Supplementary Life Insurance
The following are the types of the above-mentioned insurance:
- Term spouse life insurance
- Permanent spouse life insurance
- Variable spouse life insurance
- whole-spouse life insurance.
Term Spouse Life Insurance
This type of policy provides coverage for a specific period, usually 10 to 30 years. It is the most affordable type of spouse life insurance.
If you happen to die within the term of your policy, then your spouse will receive a death benefit. But if you die at the end of the term of your policy, then nothing will benefit your spouse.
Permanent Spouse Life Insurance
Just like the name says, it provides coverage for your entire life, as long as you pay the premiums. This policy also has a cash value component, which can multiply over time. The cash value can be used to pay premiums, or it can be withdrawn or borrowed.
Permanent spouse life insurance is more expensive compared to term spouse life insurance; however, it also provides more flexibility and death benefits for your spouse, even if you live a long life.
Variable Spouse Life Insurance
This combines the death benefit with an investment component. That is to say that the cash value of the policy is invested in a variety of different options, such as stocks, bonds, etc.
This type of policy has the potential to earn a very high rate of return, though it also comes with more risk.
Whole Spouse Life Insurance
This is similar to permanent spouse life insurance, but it has a guaranteed rate of return on the cash value.
There is a set rate at which cash value will grow, irrespective of the performance of the investment. Whole spouse life insurance is typically more expensive than other types of spouse life insurance, but it offers more certainty about the growth of your cash value.
How Much is Spouse Supplemental Life Insurance?
The cost of spouse supplemental life insurance varies depending on a number of factors, such as your age, health, and the amount of coverage you need.
However, the cost can range from a few hundred dollars to a few thousand dollars per year. The best way to find out how much spouse life insurance will cost you is to get a quote from an insurance company or check out some comparison insurance sites.
To provide more insight, the table below shows the monthly rates for $5,000 of coverage.
| S/N | Age | Cost |
|---|---|---|
| 1 | 0-29 | $0.55 |
| 2 | 30-34 | $0.58 |
| 3 | 35-39 | $0.80 |
| 4 | 40-44 | $1.14 |
| 5 | 45-49 | $1.79 |
| 6 | 50-54 | $2.79 |
| 7 | 55-59 | $4.23 |
| 8 | 60-64 | $7.275 |
| 9 | 65-69 | $12.43 |
| 10 | 70-74 | $22.14 |
| 12 | 75+ | $44.34 |
How to Know if Spouse Supplementary Life Insurance is Right for You
There are certain things you can consider to help you ascertain if spouse supplemental life insurance is right for you. They are:
- Your financial situation and goals
- Age and health
- Cost of the policy.
Tips for Buying Spouse Supplemental Life Insurance
When you’re shopping for spouse life insurance, there are a few tips you can follow to make sure that you’re getting the best policy for your needs. They include:
- Compare quotes from multiple insurers to find the best price
- Ask about any fees or charges that are associated with the policy
- Make sure you understand the terms and conditions of the policy before you sign up
- Talk to a qualified insurance agent to get help with choosing the right policy for you.
FAQs on Spouse Supplemental Life Insurance
What is the difference between term and permanent spouse life insurance?
Term spouse life insurance provides coverage for a set period of time, such as 10 or 20 years while permanent spouse life insurance provides coverage for your entire life.
Can I convert my term spouse life insurance policy into a permanent policy?
Sure, you can. Many term spouse life insurance policies have a conversion option, which allows you to convert your policy into a permanent policy.
What happens if I miss a premium payment on my spouse's life insurance policy?
If you miss a premium payment, you will typically have a grace period of 30 to 60 days to make the payment before your policy lapses. If you don't make the payment within the grace period, your policy will lapse and you will no longer have coverage.
What if my spouse becomes disabled or develops a chronic illness?
Many spouse life insurance policies have a waiver of premium rider, which means that if your spouse becomes disabled or develops a chronic illness, the insurer will waive the premiums for the policy. This rider can be very helpful in protecting your spouse's financial security if they are unable to work due to illness or injury. It's important to check with your insurer to see if this rider is available and also understand how it works.
We Also Recommend:
- Self-Employed Accident And Sickness Insurance
- 20 Best Affordable Car Insurance For New Drivers Under 25
- Top Insurance Companies in the World
- Best Health Insurance Companies For Your Family
- How Much Is Mortgage Life Insurance Per Month?
Conclusion
Spouse supplemental life insurance can be a valuable tool for protecting your family’s financial security.
It can provide a death benefit for your spouse in case you pass away, and it can also have additional benefits, such as cash value accumulation and many more.
Are you considering this insurance? then, you must talk to an insurance agent to find the best policy for your needs.
Do you have any questions or suggestions about this policy? Then do well to use the comment section.
But before you do that, kindly go through the frequently asked questions above to see if any of your concerns have been addressed.