What Is Spouse Optional Life Insurance?

Spouse Optional Life Insurance is a type of voluntary life insurance that provides a cash benefit to a spousal beneficiary upon the insured’s death. This plan is offered by an employer as a benefit to employees who want to have coverage for their spouses.

Voluntary Life Insurance Overview

Voluntary life insurance is a type of insurance offered by employers that is not required, but an option that employees can choose to enroll in if they want coverage. It typically has lower premiums than other types of life insurance, making it an affordable way to get coverage. It can provide financial protection and peace of mind for the policyholder and their family.

There are two types of voluntary life insurance: voluntary whole life and voluntary term life (group term life insurance). Voluntary whole life insurance covers the entire life of the insured, while voluntary term life insurance provides coverage for a set number of years. Premiums for voluntary term life insurance remain constant throughout the policy period but may rise after it expires.

Spouse Optional Life Insurance

Voluntary spouse life insurance is a financial protection plan that provides a cash benefit to a spousal beneficiary upon the insured’s death. The employee pays monthly for this plan, and in exchange for this, there will be money given to their spouse if they die. If the employer offers it as a benefit, it is cheaper than going out and buying individual life insurance. However, the coverage does not follow the employee if they leave the company.

Voluntary spouse life insurance can be either voluntary whole life or voluntary term life, depending on the employer’s plan. Voluntary whole life insurance covers the entire life of the employee’s spouse, while voluntary term life insurance provides coverage for a set number of years.

Benefits of Spouse Optional Life Insurance

Spouse Optional Life Insurance can help ensure that your spouse is taken care of financially if something happens to you. It provides financial protection for family members or business associates in the event of death or disability. The amount of voluntary life insurance should be based on the policyholder’s needs, such as income replacement, debts, and other expenses. A good rule of thumb is to get a policy that is 10–12 times your annual salary.

Conclusion

Voluntary life insurance, including spouse optional life insurance, is a great way to protect your loved ones if something happens to you. It can provide financial protection and peace of mind for the policyholder and their family. If you are considering voluntary life insurance, compare the different policies available to find one that meets your needs. Contact a financial professional for a quote and learn more about voluntary life insurance benefits.

Pros	Cons
Provides financial protection for family members or business associates in the event of death or disability	Coverage does not follow the employee if they leave the company
Can be cheaper than buying individual life insurance	Not required
Lower premiums than other types of life insurance	Policy options may be limited to employer offerings