Insurance can give a financial protection to insurance holders or beneficiaries when an unexpected thing happens. It is a great way to give peace of mind to insurance holders and their families because it can cover various kinds of costs. As when a person must pay for an expensive medical bill due to his serious illness, he can have the medical bill covered by his health insurance. Realizing this fact, some people are interested in buying more than one policy in order to get all the needed coverage. Insurance coverage sometimes just covers a small thing. If people have more than one policy, they have an opportunity to get broader coverage. Meaning to say, they can receive more benefits.
What is Insurance Policy Overlap?
In fact, having more than one policy can cause insurance policy overlap. For example, you decide to buy a second health insurance policy from another insurance company in order to get more benefits. When you are sick, you certainly try to have claims to both insurance companies. This condition can cause overlap with other insurance policies because both insurance policies cover the same loss. Some insurance holders think that this is a great idea to have a better financial protection upon a condition while some other insurance holders think the other way.
To know whether overlapping insurance coverage helps insurance holders, the followings are the advantages and disadvantages.
1. The Advantages of Overlapping Insurance Coverage
Having overlapping insurance coverage gives insurance holders an opportunity to receive the highest amount of money because each insurance company surely will pay for the covered loss. In this case, what insurance holders need to understand that in most cases, insurance companies will try to offer the lowest premium. However, because you will receive from both insurers, you still will receive lots of money. If the money given by the first insurance company is added with the money given by the second insurance company, the money will be enough to cover your loss.
2. The Disadvantages of Overlapping Insurance Coverage
Even though overlapping insurance coverage enables insurance holders to receive lots of money, it actually costs more money. When people have two different policies from two different insurance companies, they surely must make two different payments every month. This will also create more hassles as insurance holders must deal with 2 different companies.
Things to Consider Before Buying Multiple Policies
If you are interested in buying multiple policies, you will need to check the legality of your action. It is better for insurance holders to find out whether having overlapping insurance coverage is legal because there are pro and con opinions about this matter lately. In this case, it is legal to have health insurance and homeowner insurance from 2 different insurance companies. Then, you will need to learn more about the procedure of buying multiple policies because there are some requirements that you must meet in order to get multiple policies. Luckily, there are many insurance sites these days so that finding information about overlapping insurance coverage is easier.