You should review your term life insurance coverage whenever you experience life- changing events, near the end of life insurance terms or when your financial situation changes. The birth of a child, the purchase of a new home or a marriage should all trigger a review of your life insurance needs. Economical term life insurance policies generally offer coverage for specified periods of time, such as 10 years. You can increase your life insurance by raising the value of an existing term life policy or by purchasing additional coverage with a new policy.
Step 1
Calculate how much life insurance you need. Generally, you should establish coverage for existing debts, for expenses including funeral costs and for funds that allow your family members to maintain their lifestyle for as long as you feel is necessary. For example, if you have young children, you may want to have sufficient funds for your spouse not to work, or to cover additional child care expenses. Online life insurance calculators and insurance agents can help you determine an exact value.
Step 2
Request quotes from your existing life insurance company and from its competitors. Depending on how much time you have left on an existing term life insurance policy, it may be cost-effective to increase your coverage on your policy. Compare the cost of increasing the value of your policy with the cost of purchasing a new policy for the additional coverage you need. The life insurance industry is competitive, so review offers from multiple companies before selecting one with the stability and offerings that best meet your needs.
Step 3
Fill out the forms required to increase your life insurance policies. For a new policy, fill out a general application form with your demographic details, financial information and health-related status. To increase your existing policy, complete a special request form from the in force policy division of your insurance company. Complete all forms accurately, as false statements could result in policy termination or payout refusal.
Step 4
Complete a medical exam. Depending on the amount of coverage you need, your age and your stated health conditions, you may undergo a medical review. If you are obtaining coverage through an employee-based life insurance plan or a membership organization, the medical review may be waived for low-value term life insurance policy applications. Typically, you must undergo a medical exam for new policies and for increasing your existing policy.
Step 5
Review coverage documents and policy information to confirm that you now have the amount of term coverage you requested. Understand payment terms and policy restrictions to ensure that you pay your premiums according to the listed requirements for continuous coverage.
Member Comments