When you think about all of the different types of insurance you can buy, you normally think about one policy for each risk that you want to cover. If you have a car or a business, a single policy will provide you with the coverage you need. The same may be true for health insurance and home insurance. Why then would someone in Matthews, NC want to buy more than one life insurance policy?

It is not all that unusual for an individual to have multiple life insurance policies. It is also perfectly legal to have as many life insurance policies as you want. As long as you can find a life insurance company willing to write a policy on your life, and you pay your premiums, you could have a hundred separate life insurance policies.

While it might be a little ridiculous to own so many policies, some people feel more comfortable buying multiple life insurance policies to get the amount of coverage they need. If you want a million dollar term life policy, you could buy a single policy from one insurer, or you can buy 10 separate policies in the amount of $100,000 each.

If you purchased a whole life policy when you were young and your life changes so you need more coverage, you may want to buy a second life insurance policy. A whole life policy may be used as part of your retirement planning. A term life policy may be used to protect your minor children for a period of time until they are out on their own.

Life insurance can cover different events. While you can buy one policy in any amount you choose, sometimes, it is more convenient to buy two or more different policies. Some people use the proceeds of one policy to pay estate taxes. Some people buy a specific policy to cover the remaining principal on their mortgage. Whether you buy one or several policies is up to you. An independent agent can help you decide the best course of action to take when you need life insurance.

Insurance policies often include the declaration, insuring agreement, exclusions and conditions sections. The exclusion section describes specific items or events for which the policy offers no coverage, and the conditions section identifies the terms under which the policy is effective and valid. The agreement section states the covered items and summarizes the policy. The declaration page is often the first section of policies. It lists what and whom the policy covers.

What Is A Named Insured?

When you purchase an insurance policy, you’ll name people, including yourself, and entities that the policy insures. These are named insureds, and they are declared in the first section of the policy. Named insured have insurable interest in the policy, which means they share in the financial benefits if there is a covered loss.

First Named

The first named insured often is the owner of the policy. If you are this person on an insurance policy, your name is indeed listed first in the policy declarations section. It also means that you are responsible for managing the policy. You initiate applicable changes to the policy, such as adding additional insureds, and cancelling the policy. You’ll likely b the one making premium payments, and you’ll also be the one that receives refunds and policy update notices.

Additional Named Insureds

Courts in Matthews, NC recognize additional named insureds. If you need to name another person or entity in your policy because of some contractual agreement, give us a call so our Matthews community agent can help you update your policy. You’ll likely add them after the insurance company writes your policy, so the insurer will usually list them as addendums to your policy. They have the same rights as named insureds that are listed in the declarations section – though not the same as the first named insured.