Actually, there is no legal limit to the number of life insurance policies you can own.
That’s right, you can have more than one life insurance policy – it depends on your personals needs and budget.
How can this be?
Well, your life insurance needs may increase over time as your personal financial responsibilities increase.
So, you may want to buy another life insurance policy to provide added protection for you and your loved ones.
Or, you may already own a permanent life insurance policy, but maybe you need a lot more life insurance at an affordable price, which is where a term life insurance policy can help.
It's entirely possible to have multiple life insurance policies, and this is a crucial decision to make if you have a partner, spouse, or anyone who relies on you for financial support.
For example, couples can buy a joint life policy that covers both lives or can have one individual policy on each other.
Joint-life policies pay out on either the first partner's death or upon the death of both partners.
You can buy two or more life insurance plans to fulfill your insurance protection needs.
It is possible to have more than one beneficiary for the insurance plan. The beneficiary is the person who receives the death benefit from your insurance policy.
If you have two life insurance policies, there is no stipulation of nominating the same person as beneficiary for both of your insurance plans.
Also, you can have more than one beneficiary for each life insurance policy, and different beneficiaries for each policy.
Common Reasons to Own More Than One Policy
Example:
An engaged couple may already have individual life insurance policies, but they are now expecting a new baby and buying a new home.
All three of these major life events (wedding, buying a home, and having a baby) call for a review of your financial plan to make sure you have the financial security needed for you and your family, in case you die unexpectedly.
Getting married, having a newborn and buying a new home are all situations that increase your financial obligations to one another.
That’s why the purchase of a second life insurance plan to provide added financial security will aid in providing protection for your growing family’s future.
It’s usually a good idea to review your life insurance plan every year or two, to make sure you have all of your bases covered, and your family has the financial security they need, and deserve.
Owning Multiple Life Insurance Policies
A life insurance company might question your motives for taking out multiple life insurance policies, especially if your current financial situation does not support the overall cost of your insurance.
Basically, the issue for insurance companies isn’t how many policies you own, but rather the total amount of life insurance coverage you have compared to your income, assets and overall financial responsibilities.
As long as you can pay the insurance premiums, there is usually no limit to how many life insurance policies you may own.
Owning More Than One Life Insurance Policy
The ability for a person to own more than one life insurance policy allows people with limited funds to slowly buy additional life insurance policies over time, as their available income increases.
At first you may not have the money to buy the amount of life insurance you really need to protect your family. So, over time, you can increase your coverage as your income increases, to meet your actual need for life insurance protection.
Determining Your Life Insurance Needs
Also, it’s usually recommended to use a Life Insurance Needs Calculator to assist you in deciding how much your life insurance you really need, based on your specific situation and financial goals.
Life Insurance Quotes
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Can You Have Multiple Life Insurance Policies?
Can You Have 2 Life Insurance Policies?
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