Supplemental life insurance cost calculator: what will extra coverage cost per paycheck?
Supplemental life insurance is employee-paid coverage on top of what the employer provides. Rates are quoted per $1,000 of coverage, which makes the real cost hard to see. This calculator converts it.
Convert a rate per $1,000 into a paycheck cost
Enter the amount of extra coverage, the rate from the rate sheet and your pay frequency.
From the rate sheet for your age band and tobacco status.
Your estimate
This calculator gives an estimate only. Rates, evidence of insurability requirements and maximum coverage vary by carrier and plan.
How supplemental life rates work
Group supplemental life is priced per $1,000 of coverage per month, usually by age band and sometimes by tobacco use. Multiplying the rate by the number of thousands gives the monthly premium. Rates generally rise as you move into higher age bands.
Choosing an amount
Many people compare coverage with annual pay, which is why the multiple of salary is shown. Larger amounts may need a health questionnaire, and the coverage may end if you leave the employer unless it can be converted or ported. A needs-based estimate is a better guide than a salary multiple alone.
Common questions
What is evidence of insurability?
A health questionnaire or exam the carrier may require for larger amounts or late enrollment.
Is supplemental life portable?
Some plans let you take the coverage with you when you leave, at a different rate. Check the portability terms.
Is the premium pre-tax?
Usually not for supplemental life. Ask your payroll provider.
How does this differ from basic life?
Basic life is employer-paid. Supplemental is optional and employee-paid.
Laws and rules referenced
26 U.S.C. § 79 and 26 C.F.R. § 1.79-3 — Group-term life insurance: the first $50,000 of coverage is excluded and the cost above it is imputed using the uniform premium table in the regulation (https://www.law.cornell.edu/cfr/text/26/1.79-3).
This tool gives estimates for education, not tax or legal advice. Rules change, so confirm your situation with a qualified advisor.
Talk to us about group life coverage
Book a 30-minute call and we will look at your workforce, your budget and the life and disability options that fit. Visit us at 41000 Woodward Avenue, Suite 350 East, Bloomfield Hills, MI 48304, or call 248.370.8853.
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