Can a single person have multiple life insurance policies?
If you do not have experience with life insurance policies, you are bound to have several questions. For instance, many people raise the question, “Can I carry more than one life insurance policy?” These people are surprised to learn that yes, it is possible to have multiple life insurance policies at the same time. However, the number and type of policies that you carry is highly dependent on your individual needs.
Here’s what you need to know about securing multiple life insurance policies.
Securing Multiple Policies
You can own multiple policies from different insurance providers. However, when you apply for a new policy, the insurance company will ask about your other coverage to ensure that the amount you wish to secure is reasonable.
While you can secure a considerable amount of life insurance coverage, insurers will start to question you if your total coverage starts to exceed 20 to 30 times your income.
Securing the Right Policies to Meet Your Needs
Oftentimes, people secure multiple life insurance policies because they need to secure additional coverage for their unique needs. For instance, a small business owner might secure a term life insurance policy to replace their income and provide for their family. They might secure another policy to take care of their business loans or to fund a buy-sell agreement with their business partner.
Insurance for Life
People also tend to double up on whole life and term life policies. These individuals carry a whole life insurance policy because it is a financial asset. This type of policy can be used as a source of post-retirement income or as a means of funding long-term care.
They carry an additional term life policy to provide extra coverage during pivotal moments in their life. For instance, individuals tend to secure this extra coverage to last them until retirement or until their children are independent.
This is what you need to know about securing multiple life insurance policies. Do you have further questions regarding your coverage needs? If so, don’t hesitate to contact us at John Scott Insurance. We are ready to assist you with all your personal insurance needs today.