Increase in Life Insurance Coverage Virginia VA
Reader’s Question:
Hi. I want to know how I can increase my life insurance coverage without getting an additional life insurance policy from my agent here in Virginia. Is this possible?
Felton
Alexandria, VA
Felton, I think there is really nothing we can do about increasing our coverage once we buy a life insurance policy except get additional policies. However, there are contracts that will pay out more than what your face value is.
An example of this is attaching an accidental death benefit rider. If you have an accidental death benefit rider attached to your life insurance policy and your cause of death is due to an accident, your life insurance provider will more likely double your face amount. Your life insurance policy will pay for your original face value coverage and then your accidental death rider benefit will match your face value and pay your beneficiary the same amount as your life insurance, thus making your total death benefit double the amount.
Also, attached to your accidental death benefit is a dismemberment insurance. So, not only will you be having double coverage when you die of an accident, you will also get a lump sum when a part of your body got dismembered. The lump sum you get will depend on the severity of the accident as specified in the policy.
Another thing to remember also about AD&D (accidental death and dismemberment) riders is that it doesn’t often cover accidents brought about by dangerous sports activities such as parachuting, flying an aircraft, and involvement in war.
So, when you call your agent in Virginia, be sure to ask about a double indemnity feature or an AD&D rider.