Voluntary Life Insurance

Voluntary Life Insurance

A life insurance policy that an employee may elect to purchase if he/she feels the employer-sponsored insurance does not provide sufficient coverage. The employee pays all premiums on his/her own (that is, without help from the employer). The death benefit of a voluntary life insurance plan is usually expressed as a multiple of the employee's annual income. For example, the plan may pay three times the employee's final salary when he/she passes away.