If you’ve been asking “are you allowed to have two life insurance policies?”, the good news is that the answer is yes. At face value, it makes perfect sense: the more protection, the better.
In reality, things can get a little more complicated. In this guide, we’re going to examine how you can have multiple life insurance policies, and whether it is something you and your family could benefit from.
Why take out more than one life insurance policy?
There are several reasons to consider taking out two or more life insurance policies. The following situations might apply, meaning you’re in a position to take out additional life insurance:
– You’d like to receive maximum cover for any financial responsibilities, such as a mortgage or school tuition fees, on the basis that your current arrangement doesn’t fully cover them.
– You’ve made positive lifestyle or health changes, such as giving up smoking, and you would like to find better premiums while still retaining your old policy.
– You have an existing joint policy and would like to take out two separate single life insurance policies.
Life insurance is important for ensuring loved ones are supported, debts are paid off and inheritance tax bills are covered in the event of your death. However, some policies can become a burdensome expense for the policyholder, which means it is always advisable to look around for the best possible deal, and in some instances, this might mean taking out a new policy in addition to keeping your existing one.
Do I need two life insurance policies?
This will depend on your individual circumstances. Just because you can have two life insurance policies, it doesn’t mean that you should.
Life insurance premiums are calculated based on the information you provide about your health history at the time of taking out a policy. There are no guarantees that you will pay the same rate (or less) with an additional policy, as you will have aged in the interim between taking out your original policy and now.
Some customers prefer to amend their existing policy based on their changing requirements. In some cases, you may be able to make changes to your policy terms, the amount of cover you receive, or the frequency of your premium payments without having to disclose any further information about your health. Before doing so, you may want to read through the terms and conditions of your policy to check for any exclusions or other clauses.
Are you allowed to have two life insurance policies or more?
There is no limit on the amount of life insurance policies you can take out. If your current situation changes, you might want to take out more than one life insurance policy if the options are better than simply renewing your existing policy.
Can couples take out multiple life insurance policies?
Some couples opt for joint life insurance. Joint life insurance is designed to cover the lives of both parties in the couple but typically pays out after the death of one of the insured parties. At this point, the policy ends.
Taking out two separate single life insurance policies means that a surviving partner will still have adequate cover in place, even after the death of the partner they are named on a joint life insurance policy with.
An additional benefit to single-life policies is that they provide more flexibility, as the payouts go to your estate and are distributed under the terms of your last will and testament, whereas joint policies tend to pay out to the surviving partner only.
Can I take out life insurance with several providers?
Yes, there is nothing stopping you from taking out several life insurance policies with different insurance providers. While some insurers might offer you a better deal for sticking with them over the years, others may provide you with an unmissable offer to gain your custom. It, therefore, makes sense to look around for the best possible deal.
Find out more about life insurance today
If you’re in the market for a new life insurance policy, why not use our site to find the best deals available? Our insurance calculator tool should be able to help you work out how much you can expect to pay each month. Alternatively, feel free to contact us and our team will do everything they can to help assist you with any life insurance-related queries.