Voluntary Spouse Life Insurance

Shawn Plummer

CEO, The Annuity Expert

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 right away 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 features like 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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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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