When you first purchased your life insurance policy, you chose a policy amount that worked at the time. If your life circumstances have changed — for example, marriage, children, a new home or a job change — you may need more coverage. Here are practical ways to increase your life insurance protection.
Figure out the increase you need
Major life events change how much coverage you need. Perform a needs analysis with your insurance agent to determine exactly how much additional life insurance to buy; this typically accounts for final expenses, ongoing family support and debt repayment. For a general primer on policy types and how they differ, see Life Insurance: Overview.
Add coverage to your employer-sponsored policy
Many employers offer a basic life insurance benefit. Ask your Human Resources manager whether you can increase that benefit through the workplace plan. Because you already have coverage through your employer, you may not need extra paperwork or a medical exam to raise the amount.
Increase coverage on your personal policy
If your primary coverage is a personal policy from a commercial insurer, contact your agent to request a higher death benefit. You may pay higher premiums or a fee for additional coverage, and you may need to complete underwriting information. For details about individual options, review Individual Life Insurance.
Purchase another policy
Buying a second policy can cover the gap between your current coverage and what you need. You can keep your existing policy and add a second policy from the same or a different carrier; when applying you must disclose existing life insurance. If you want a quick refresher about basic life insurance concepts, see What is Life Insurance?.
Things to consider
- Research your options. Compare term, whole life, universal, indexed and variable policies and shop multiple companies to get the most coverage for your budget.
- Check your budget. Make sure you can afford higher premiums over time so your policy does not lapse.
- Prepare for underwriting. Insurers will request details about your health, finances and occupation; these factors affect eligibility and pricing, so answer truthfully and provide supporting documentation as needed.
You can add coverage in several ways depending on your needs and budget. As you decide on the right approach, talk to an agent for guidance tailored to your situation.
Frequently Asked Questions
Can I increase my employer-provided life insurance without a medical exam?
Sometimes—small increases offered through employer plans may not require new medical underwriting, but larger increases often do.
Will buying a second policy affect my premiums on the first policy?
No; buying an additional policy does not change the premium or terms of an existing policy, though you must disclose current coverage during underwriting for the new policy.
What factors do insurers consider when approving higher coverage?
Insurers typically review health history, age, occupation, lifestyle, and financial information to assess insurability and pricing.
Is it better to increase an existing policy or buy a second one?
It depends on cost, underwriting, and the type of coverage you need; comparing quotes for both options helps determine the best choice.