If you’re in the market for life insurance, you’ll come across many different types of policies, and you might be unsure which is the best for you. If you already have a life insurance policy, you might be unsure if it still has enough coverage for your family as your needs change: maybe your mortgage payments have increased, or maybe an unexpected expense has hit your family budget. The question is, if there isn’t one policy that seems exactly right for you, or if you find that you need more coverage, can you choose to purchase more than one life insurance policy? And do you need to?
How Many Policies Can You Buy?
There are no laws or regulations regarding how many life insurance policies a person can have, so technically you are allowed to purchase as many policies as you want. For example, you can choose to purchase multiple term life insurance policies, which would provide coverage for things like your mortgage, college tuition, or final expenses, and a permanent life insurance policy, which would allow you to leave an inheritance for your children on top of all that.
It’s important to note, though, that while you can have as many life insurance policies as you want, life insurance companies might have some concerns about how many policies you have, so before purchasing more than one policy, you will need to determine if you need more than one.
Do You Need More Than One Policy?
There are certain scenarios in which it makes sense to buy more than one life insurance policy. These situations include:
- You need more coverage– If you would like a higher death benefit, you can purchase multiple term life insurance policies and a permanent life insurance policy, or any other combination of policies. Having more than one will allow you to change your coverage amounts, and will help ensure that your family is fully covered throughout the years. For example, if you are growing your family and want extra coverage until your children become adults, you can purchase a second term policy to cover the next 15 or 20 years of their lives.
- You don’t want to put all your eggs in one basket– Unfortunately, life insurance companies can go out of business, and if this happens to your carrier, you will lose your policy. In this case, your family will not receive a death benefit if something happens to you; if, however, you have multiple policies, your family’s financial stability will still be ensured in the event of your passing.
- You own a business– If you are a business owner, you might need a separate life insurance policy to take care of your family, and one to cover business loans.
When applying for more than one life insurance policy, avoid applying for multiple policies at once: multiple concurrent applications can make it look like you are applying for more coverage than you really need, which can lead to you getting denied. If you are interested in purchasing multiple policies, the best thing to do is to speak with an agent and compare different policies from different companies before you make your decision.
If you decide that you would like more coverage but do not want to buy another life insurance policy, you have the option of adding policy riders to a policy instead. There are multiple types of insurance riders that you can add on to a policy to get more protection in specific areas, and to fill coverage gaps. For example, you can add a term conversion rider when you purchase a term life insurance policy, which will allow you to convert your term life insurance policy into a permanent life insurance without undergoing a medical exam.
As your life changes and your responsibilities change, you might find yourself needing more life insurance coverage, and the best way to make sure your family is fully protected might be to have more than one life insurance policy. There are many different types of policies to choose from, so if you’re not sure where to begin, consider using online tools, or speaking with an agent. The right policy for you is out there! We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.