In today’s society, almost everyone needs to buy at least a couple insurance policies to cover their various bases. Insurance policies are designed to help protect yourself from financial risks that are incurred in your everyday life. In some cases, the policies that you have may not provide enough protection to give you true peace of mind. In these situations, adding some extra insurance coverage could be beneficial. There are many times where the average person may find it necessary to add extra insurance coverage.
Ways to Get Extra Insurance
There are a few different ways that you could add to the level of insurance protection that you have. One way that you could get extra coverage is to cancel your existing policy and get another bigger insurance policy. Another way that you could get more coverage is to simply buy an additional policy. For example, if you have a $50,000 life policy, you could buy another policy with a $100,000 face value. Then you would have a total of $150,000 in protection.
A third option that you have is to buy a rider. A rider is an amendment to an existing policy that adds additional coverage. For instance, if you have a $100,000 life insurance policy, you may choose to buy an accidental death and dismemberment rider. Then if you die from an accident, the face value will double and pay your beneficiaries $200,000 in total.
Reasons to Get Extra Insurance
One reason that you may find it necessary to get more insurance coverage is that your circumstances change. For instance, if you have a small life insurance policy to provide for your spouse and then you have kids, you may want to upgrade your policy to account for the change. This way, your children will also be provided for if you die unexpectedly. Since your circumstances may change frequently, you should periodically review your situation to determine if you need to update your coverage.
Sometimes you need to buy additional insurance coverage because the value of what you are insuring changes. For instance, when you initially bought your house it may have been worth $100,000. You bought a homeowner’s insurance policy with a replacement value of $100,000. After 15 years, your house may have appreciated to a value of $200,000. At that point, if your home were destroyed, you would not be able to rebuild it for the $100,000 that you would receive from the insurance company. In this situation, upgrading your policy to a $200,000 level can ensure that you’re protected financially.
How to Get Extra Coverage
When you determine that you need extra insurance coverage, it is usually to your advantage to shop around a bit before deciding on a policy. If you could use some extra insurance coverage, check out resources like InsuranceQuotes.org to get multiple quotes at the same time. You will then be able to find the coverage you need at the cheapest rate possible. At that point, you’ll have the peace of mind that you need once again.
Contributed by Jenn Lang, a freelance writer specializing in business and technology.
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