Now you probably know that the best time to buy life insurance is when you are young and healthy. This is because you are very likely to lock in a nice low interest rate throughout your term of office – and of course you get the peace of mind that comes from knowing that you are covered and your family is financially protected
As I said, things can change . Maybe you bought a 30-year period when you were 25 and childless, and ten years later you are married, earning a much larger income (while paying a mortgage on a new house) and raising a child out of half a dozen children. (Hi, it could happen.) If so, the coverage you bought ten years ago would probably not be enough to take care of your loved ones if the unexpected happened.
If you need additional insurance coverage ̵
In this article:
Why you may need additional insurance coverage
As you learned in our (only slightly exaggerated) example above, there are a handful of reasons why you may need more lifelong insurance coverage than you have for present. As a reminder, your life insurance pays out a death benefit to your loved ones (also known as beneficiaries) in the event that you die before the end of your period. This cash benefit can be used for everything from funeral expenses to mortgages to education expenses and even medical payments. If your financial needs have increased significantly since you first purchased insurance, you may need additional life insurance coverage.
Some reasons why your needs may now exceed your coverage are:
- Having a new baby. Of course, having a child means more love in your home, but it also means extra costs, from clothes and food to education costs along the way. If you did not plan for these expenses when you received your current insurance, you may need to supplement an insurance policy.
- A new job and / or a salary increase. Hi, you're making more money! Ways to go for the well-deserved raise, promotion or lottery win. But along with a larger income often comes larger expenses (new home, other car, robot butler, etc). The point is, you may want more life insurance coverage if your loved ones are suddenly left without your newer, larger income for support.
- A new home. Life insurance and a mortgage tend to go hand in hand. This is because both are long-term financial commitments. With a mortgage, you agree to pay your lender a certain amount of money for a decade or three. With a life insurance policy, you approve coverage that helps you cover expenses, including mortgages, over a similar period of time. Suffice it to say that you do not want to leave your loved ones on the hook to pay a mortgage that exceeds your existing life insurance amount.
- You are worried about long-term care. It can be for a child, for an aging parent, a sibling or even for yourself. If you have had a sudden rise in long-term medical costs related to a family member's ongoing illness or medical condition, you may want to consider additional coverage. (Note: If you are experiencing an ongoing illness or medical condition, this may affect your ability to get additional coverage and possibly what you pay for that coverage if you can get it.)
- Your partner is no longer working. If you are in a relationship where both partners work, you will probably share your life insurance coverage accordingly. If this is no longer the case – say if any of you are now staying home to raise a child – you may need a supplemental life insurance policy that affects the cost of childcare.
Choosing the Right Amount of Additional Coverage
When it comes to determining how much additional coverage you need and how long to apply, the old rule of thumb still works, albeit with a key action. You still want enough coverage for about five to ten times your salary. But you can also subtract your current coverage amount from that number to determine how much additional coverage you actually need.
For example, if your new coverage need equals $ 1 million, but you currently have a $ 500,000 policy, you would like to apply for an additional $ 500,000 in coverage to compensate. You can start the application process in your Haven Life account center, which is also where you will eventually handle both policies (including payments). Note that when you apply for a second insurance policy, you can only have up to $ 3 million in total coverage (if approved
You may be wondering: why apply for a supplementary insurance policy instead of canceling your existing one? Well, keep in kind that The rate you are currently paying for your coverage is based on your age and health at the time of application.You are older now (sorry to remind you), so applying for $ 1 million in new coverage would probably be more expensive than Apply for $ 500,000 in new coverage to add to your existing $ 500,000 insurance. Long story short: it will be cheaper in the long run to get a new insurance just for the extra amount you need. Life not support policies purchased for the purpose of replacing existing coverage.
Phew. It's a lot. Are you still wondering how much additional life insurance coverage you may need? An online calculator may come in handy, or just check d Here is a preview of what you might not expect to pay for such insurance if you are a non-smoker with excellent health.
Applying for Additional Coverage
Remember our simple online application process, where you truthfully provided us with answers to some important questions about your age, your health and your coverage needs? Of course you do. It is the power of simplicity. Get ready to do it again as you will need to reapply for additional coverage.
Although some of the data will have changed, the general idea remains the same. Give us the unforgettable truth when you answer some important questions and we will review your application as soon as possible. You will be treated as a new applicant throughout the process. For most people (even those who have been approved for InstantTerm before) this means that you need a medical examination, which you can easily schedule the time and place you choose. If you've experienced an exam before, you know that there is nothing to be afraid of – less fun than binge-watching your favorite show on the couch, sure, but almost as easy and it usually only takes 20 to 30 minutes to complete.  To be clear, this is an application, so there is a chance that you may not be approved for additional coverage. If you already have $ 3 million in Haven Term coverage, our highest, you will not be eligible for another policy. If you have developed a chronic illness since you bought your first insurance, you may not be approved. And if you are within 90 days of your first insurance, Haven Life will instead help you add coverage to that policy.
That being said, taking out a second insurance policy is a great way to make sure you have the coverage you and your family require. Congratulations if you have experienced a milestone in recent months or years. And if that milestone – a new baby, a new house or a new job – means you need another life insurance policy, we're honored that you might consider us for it. Making life less difficult is in our DNA, and this is one of the ways we can do just that.
About Louis Wilson
Louis Wilson is a freelance writer whose work has appeared widely spectrum of publications, both online and in print. He often writes about travel, sports, popular culture, men's fashion and grooming and more. He lives in Austin, Texas, where he has developed an unlimited passion for breakfast tacos, with his wife and two children.
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Haven Life is a customer-centric life insurance agency supported and wholly owned by the Massachusetts Mutual Life Insurance Company (MassMutual). We believe that it is easy to navigate decisions about life insurance, your personal finances and your general well-being. ). We believe that navigating life insurance decisions, your personal finances and your general health can be refreshingly easy.
Our content is created for educational purposes only. Haven Life does not support the companies, products, services or strategies discussed here, but we hope they can make your life a little less difficult if they suit your situation.
Haven Life does not have the right to provide tax, legal or investment advice. This material is not intended to provide and should not be relied upon for tax advice, legal advice or investment advice. Individuals are encouraged to seek advice from their own tax or legal counsel.
Haven Term is a term Life Insurance Policy (DTC and ICC17DTC in certain states, including NC) issued by Massachusetts Mutual. Life Insurance Company (MassMutual), Springfield, MA 01111-0001 and offered exclusively through Haven Life Insurance Agency, LLC. In NY, Haven Term is DTC-NY 1017. In CA, Haven Term is DTC-CA 042017. Haven Term Simplified is a simplified Life Insurance Policy Issue (ICC19PCM-SI 0819 in certain states, including NC) issued by C.M. Life Insurance Companies, Enfield, CT 06082. Numbers and functions for insurance forms and riders may vary by state and may not be available in all states. Our California agency license number is OK71922 and in Arkansas 100139527.
MassMutual is rated by A.M. Best company as A ++ (Superior; top category 15). The rating is from Aril 1, 2020 and may change. MassMutual has received different ratings from other rating companies.
Haven Life Plus (Plus) is the marketing name of the Plus Rider, which is part of the Haven Term policy and offers access to additional services and benefits free of charge or at a discount. The driver is not available in all states and is subject to change at any time. Neither Haven Life nor MassMutual is responsible for the provision of the benefits and services made available under Plus Rider, provided by third party providers (partners). For more information about Haven Life Plus, visit: https://havenlife.com/plus.html