Life insurance products offer financial protection to beneficiaries upon the insured’s death. A fundamental distinction exists between employer-sponsored plans that provide a core, often minimal, level of coverage and those that allow individuals to select supplemental amounts at their own expense. The former typically provides a baseline benefit, such as one or two times an employee’s annual salary, while the latter offers the opportunity to purchase additional coverage based on individual needs and financial circumstances.
Employer-provided basic coverage serves as a foundational element in an employee benefits package, offering a degree of financial security without requiring direct contributions from the employee. The supplemental option enables employees to customize their protection to address specific requirements, such as outstanding debts, future educational expenses for children, or estate planning considerations. Its availability empowers individuals to enhance their family’s financial safety net in a manner tailored to their unique situation. The growth of such offerings reflects an increasing awareness of personalized financial planning and the desire for greater control over benefits.
