So you want to add extra coverage to your ‘current policy’…Can you?
The short answer: No.
Not to your current policy, but you do have options.
A standard life insurance policy is a document that says you agree to pay the insurance company a certain amount in return for paying a lump sum of money to your loved ones when you die.
A life insurance policy is a binding legal document that you cannot change or add to once you have agreed to the terms.
Extra coverage, also known as ‘riders’ are benefits that you can ‘add on’ to your life insurance or mortgage protection life insurance policy. While you cannot add riders to your existing policy, there are some other options for increasing your coverage.
You can think of stand-alone policies like riders that you purchase separately.
Like a rider, the stand-alone policy coverage will provide benefits while you are still alive. And just like life insurance, stand-alone policies often pay in one lump sum.
A few examples of stand-alone policies are:
With a stand-alone policy, you can choose the type of coverage that you want and how much you can afford to pay. For example, you may want to get critical illness coverage along with long-term medical care. If you develop a critical illness, your stand-alone policies will help cover the high cost of treatment.
One big difference between stand-alone policies and riders is that stand-alone policies are separate from your basic life insurance policy. Your existing life insurance policy will stay the same, even if you receive benefits from your stand-alone policies.
A New Policy Instead of Your Current One
You also have the option to cancel your existing life insurance policy and replace it with a new one, adding the riders that you want. You should be careful not to lose any benefits that you have earned by doing this.
Never cancel an old policy before you have a new one to replace it.
The last thing you want to do is have a time period where you are not covered at all.
A Second Policy in Addition to your Current One
Getting a second life insurance policy could be the perfect solution to getting the extra coverage you need. This will prevent you from losing the benefits of your existing policy while giving you the option to include add-ons that you don’t have now.
A second policy can have other benefits as well. If you have more than one loved one who you want to leave money to, having different policies could make it easier to determine how the money will be divided. Sometimes people will use one policy to cover their final expenses and pay their bills and use the money from the second policy to support their family members.
Contact Asurea today to learn about your options.
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Asurea offers Life Insurance, Mortgage Protection Life Insurance, Medicare Supplement Insurance, Final Expense Insurance, Disability Insurance, Long-term Care Insurance, Retirement Planning products and more. For additional information, click on the ‘Learn more’ button below. Want to have articles just like this delivered to your inbox? Just enter your email address in the box below and click ‘Subscribe.’
This information is provided for general consumer educational purposes only and is not intended to provide legal, tax or investment advice. Dollar amounts are for illustrative purposes, not actual.
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