What Does Optional Term Life Insurance Cover?

Optional Life Insurance (Optional Life) provides additional protection and insurance to employees and eligible dependents by increasing the amounts paid as part of existing Life or Dependent Life Insurance policies. An individual can apply for a combination of Life and Optional Life up to the overall Life Insurance maximum, which is usually based on the size of the employer.

Group Size	Overall Life Insurance Maximum
2-5	$250,000
6-9	$500,000
10-24	$850,000
25-49	$1,500,000
50-199	$2,500,000

To apply for Optional Life, speak with your Advisor or Plan Administrator. They can provide you with the required forms and guide you through the process. You’ll need to apply for the optional coverage through your Insurer and supply medical evidence to determine eligibility. If approved, your Insurer will add Optional Life to your policy and the appropriate deductions will be removed from your paycheck.

Optional Life is also available to spouses up to a separate maximum determined by the Insurer. Dependent children are generally not eligible for Optional Life, but may be covered under Dependent Life Insurance.

Life Insurance is a good benefit to have, but increasing Life Insurance payments through Optional Life makes sense for certain demographics and life stages. For example, a married person with children who rely on them to provide an income may want to consider Optional Life to ensure their family is financially protected.

An example of Optional Life in action is Beth, a 23-year old single woman who has just started working at a small tech startup. Her Life Insurance policy through her employer covers $50,000. Ten years later, after getting married, having children, and purchasing a home, Beth realizes that this amount is not enough to cover expenses and protect her family financially. She speaks with her Plan Administrator and is approved for Optional Life Insurance of $750,000, for a total coverage of $800,000 when her original Life Insurance policy is included. This amount would cover her family’s existing debts and allow them to maintain their standard of living in the event that Beth was no longer able to provide for the family.

Overall, Optional Life Insurance provides additional protection and insurance to employees and eligible dependents by increasing the amounts paid as part of existing Life or Dependent Life Insurance policies. Speak with your Advisor or Plan Administrator to determine if Optional Life is right for you.