What are voluntary life insurance and spousal voluntary life insurance?

Shawn Plummer

CEO, The Annuity Expert

When most people think about life insurance, the first thing that comes to mind is mandatory coverage through an employer. However, another type of life insurance policy is voluntary life insurance. Voluntary spouse life insurance is a type of policy that an individual or a couple can purchase to provide coverage for their spouse in the event of their death. This guide will explore what voluntary life insurance and voluntary spouse life insurance are and how they can provide peace of mind for loved ones.

What Is Voluntary Life Insurance?

Voluntary life insurance is a type of insurance you can purchase through your employer. It is not required, but it is an option that you can choose to enroll in if you want coverage.

Voluntary life insurance typically has lower premiums than other types of life insurance, making it an affordable way to get coverage. And, because it is offered through your employer, the enrollment process is usually straightforward.

If you are considering voluntary life insurance, compare the different policies available to find one that meets your needs. You should also consider whether you want a term or permanent policy.

A term policy will protect you for a set period of time, while a permanent policy will provide coverage for your entire life.

Either way, voluntary life insurance can give you and your loved one peace of mind knowing that you are covered.

What Is Voluntary Spouse 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.

Understanding Voluntary Spouse Life Insurance

Many insurers provide voluntary life insurance plans with additional benefits and riders, such as the option to purchase additional coverage or portability in case of termination or a layoff.

Voluntary life insurance is frequently provided to employees immediately or shortly after their hire.

It’s also important to compare an organization’s plan with other insurance companies to ensure it’s among the best life insurance plans accessible.

Types of Voluntary Spouse Life Insurance

Employer-sponsored voluntary life insurance can be divided into voluntary whole life and voluntary term life (group term life insurance).

Voluntary spousal whole life insurance

Voluntary whole life insurance covers the entire life of the insured. Voluntary spousal whole life insurance covers the entire life of the employee’s spouse.

Voluntary spousal term life insurance

Voluntary term life insurance is a form of coverage that provides the employee’s spouse protection for a set number ranging from 10 years to 40 years. Voluntary term insurance does not include building cash value or variable investing. As a result, voluntary term policy premiums are less expensive than whole life equivalents. Premiums remain constant throughout the policy period but may rise after it expires.

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Next Steps

Voluntary life insurance is a great way to protect your loved ones if something happens to you. If you are married, you must consider buying spousal life insurance. This coverage can help ensure that your spouse is taken care of financially if something happens to you. Contact us today for a quote and learn more about voluntary life insurance benefits.

What Are Voluntary Life Insurance And Spousal Voluntary Life Insurance?

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Frequently Asked Questions

Is it good to have voluntary life insurance?

Yes, voluntary life insurance can provide financial protection and peace of mind for the policyholder and their family.

Are voluntary benefits worth it?

Yes, voluntary benefits can help reduce out-of-pocket expenses and provide additional coverage that would not be available otherwise.

What is the difference between basic life insurance and voluntary life insurance?

Basic life insurance is typically employer-provided and covers a specific death benefit. In contrast, voluntary life insurance allows the policyholder to customize their coverage, including additional benefits such as accidental death and dismemberment.

Should I get voluntary life and AD&D?

It depends on your needs and financial situation. Consider the coverage amount, cost, and other factors when deciding.

What is a good amount for voluntary life insurance?

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.

Does voluntary life insurance have cash value?

Yes, some voluntary life insurance policies have a cash value component.

Can you cancel voluntary life insurance at any time?

Yes, most policies allow the policyholder to cancel voluntary life insurance at anytime.

How to use voluntary life insurance?

Voluntary life insurance can provide financial protection for family members or business associates in the event of death or disability.

Can you keep voluntary life insurance after leaving a job?

Yes, you can keep voluntary life insurance if the policy is portable after leaving a job.

Do single people need voluntary life insurance?

Yes, single people may need voluntary life insurance if they have financial obligations such as debt or dependents to care for.

Is voluntary life insurance taxed?

No, voluntary life insurance is not taxed.

How do voluntary benefits work?

Voluntary benefits work by allowing employers to offer additional benefits to their employees that can be purchased on a pre-tax basis. These benefits can include health, dental, vision, life, and disability insurance and other supplemental coverage.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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