How many life insurance policies can I have?
How many life insurance policies can I have?
When it comes to life insurance a common question that many people ask is "How many life insurance policies can I have?" There is no reason why you cannot have more than one life cover policy at the same time, from the same or different life insurance companies. For example, you can take out a permanent life insurance policy and also take out a term life policy should your needs change and you require some extra cover. If you however apply for too much cover and have too many policies, life insurance companies may question why you need so much cover, especially if you do not need that much financial cover.
It is important to know what the different policies can offer you, so that you can better understand the options available to you. You don't necessarily need more than one life insurance policies, but if you feel you need it, the option is available to you. There are generally two types of Life insurance policies to choose from, Term Insurance and Permanent Insurance. If you understand what these policies offer, you can better ascertain if you need another life assurance policy
When taking out a term insurance policy, you have to indicate the specific term which you need cover for. This policy will only be payable if the insured dies within the specific term stated in the policy. If the insured party lives beyond the term of the policy, no benefits will be paid. In the earlier years of this policy, it carries the lowest premiums and the premiums increase as the policy holder gets older.
A Permanent insurance policy provides cover throughout the life of the insured. The cost of permanent insurance is a bit higher than that of term life insurance policy, this is to keep the monthly premiums as low as possible. Permanent insurance has different policies to choose from, the four basic types of permanent insurance are whole life, universal life, limited pay and endowment.
It is up to you to access your needs and decide if another policy can be beneficial to you and your family. If you feel that you need some extra cover, the option of multiple life insurance policies is there and there is nothing stopping you from acquiring another life insurance policy, but if you don't really need it you could be wasting your money.
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