Since life insurance is designed to cover your loved ones when you are no longer around, it is crucial to have the right amount of coverage in order to provide for those who matter most. As such, some individuals consider adding more than one life insurance policy.
You can have more than one life insurance policy at a time depending on your insurer and the type of policy.
Whole Life Insurance Policies are the Exception
When looking for a life insurance policy, you will find that you cannot have more than one whole life insurance policy at a time. Since this type of insurance covers you for your entire life, insurers do not allow one policyholder to carry more than one. This includes universal life insurance policies, which are forms of whole life insurance policies that allow policyholders to withdraw cash value while the policy is still active.
Term Life Insurance Policies
You can, however, have more than one term life insurance policy at the same time. Term life insurance policies last only for a set amount of time such as 10 years or 20 years depending on the policyholder’s needs. For example, say you want a term life insurance policy for 10 years in case you pass away before paying off your student loans, but you also want a 20 year life insurance policy in case you pass away before paying off your mortgage. In this case, you may have both a 10 year term life insurance policy and a 20 year life insurance policy.
You can also have a whole life insurance policy and a term life insurance policy. If you want a whole life insurance policy but desire extra coverage until you have paid off certain debts, you can add a term life insurance policy for as long as you need it.
Should I Have More than One Life Insurance Policy?
Everyone’s life insurance needs are different, so it is important to speak with your loved ones and your insurance agent about what type of policy you need—and if you need more than one. Keep in mind that life insurance limits and terms may differ from insurer to insurer, so talk with your insurance agent about their specific rules when it comes to life insurance policies. It is crucial to have the right coverage to protect your family.
For more information about life insurance, contact our team of dedicated insurance agents at (888) 296-0345 today!