Broker Insolvency

Hey guys, just wanted to clarify something.

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Source: https://lazybutintelligentinvesting.wordpress.com/2018/07/02/what-happens-to-my-money-if-td-ameritrade-goes-bankrupt-as-a-singapore-based-investor/

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Quoted : In the event that TD Ameritrade does go bankrupt, clients are protected under an insurance scheme under the US-based Securities Investor Protection Corporation (SIPC), put in place to protect your money and securities, up to a cap of $500,000 USD (out of which cash is limited to $250,000 USD).

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So just wondering, how do people actually trust TD to hold funds in the millions of USD when they are only protected up to $500 000 USD? Do people with more than that limit have to apply for extra protection? Thanks