Can I Add Or Change Coverage In The Future?
When talking to senior clients, I often start off the conversation by saying, “So you woke up this morning dreaming about dealing with senior life insurance, huh?” This statement often gets a laugh and for good reason.
Most people, including myself, do not enjoy purchasing insurance coverage. It has become a very expensive process with way too many options. It feels like there are a million insurance companies in the market with a million different plans.
Trying to sort through all of these options to decide on the best plan for you can be a bit overwhelming. We find that this is probably the number one reason people do not purchase coverage. They call in with good intentions, hoping to purchase a policy for themselves or even potentially an elderly parent. They ask a lot of questions, give specifics on their situation, and compare the various plans, which would include whole life insurance and burial insurance coverage.
One of the common areas that can freeze a person at this point in the process is not knowing how much coverage is required. I generally try to simplify the process by saying the best policy to buy is the policy you are comfortable paying for since you must be able to make the monthly payment in order to keep the policy in place. Even if it’s not the ideal death benefit or senior plan for your situation, it can be a great starting point.
This conversation often leads into the question, “Can I purchase more coverage in the future?” In order to answer this question, let’s investigate three different times when individuals will consider purchasing a new policy and also the best way to go about it.
The first time individuals may wish for more coverage is shortly after the policy begins. Perhaps they were conservative on the original monthly payment selected, but then they decide they want more coverage. This is generally a very simple fix as most companies will allow more coverage to be added with no additional requirements as long as it’s done within the first 30 to 60 days. The insured simply completes and signs an additional application according to the company’s guidelines, and the policy will generally be updated the same day or in two to three business days.
The second time individuals typically want to make a change is during the first year of the policy. The process for changing the policy will be very similar to the prior scenario. However, most companies will take a second look at their health guidelines to confirm nothing has changed. This is still a pretty straightforward process and can usually be facilitated in a very short period of time.
The third time individuals consider adding more coverage is after the first 12 months of the policy. Because the insured’s age and potentially health or financial circumstances have changed, it’s often best to keep the original policy in place. I would generally recommend a client consider purchasing a second policy to supplement the original. I make this suggestion because the original policy is most likely cheaper for the same coverage since the individual was younger at the time of purchase.
In most cases it’s a pretty simple process to change or add coverage to a policy in the future. Hopefully, you will not allow this hurdle to stop you in your buying process, as we believe some coverage is better than no coverage at all. If your financial needs change in the future, you can always reconsider your options at that point.
If you would like to discuss any of this information in further detail, feel free to contact one of our insurance professionals at 866-699-1884. Let us know how we can help.