Can You Have Multiple Life Insurance Policies?
Key Takeaways
- You can have multiple life insurance policies if necessary for your family’s financial security.
- One option is to add another policy on top of the insurance provided by your employer for an additional death benefit.
- You can buy multiple term life policies to get enhanced protection during certain periods of your life.
- Purchasing a guaranteed acceptance life insurance policy in addition to another policy can give your family quick access to funds for final expenses.
Life insurance protects your family from financial struggles after your passing, but a single policy may not provide the full benefits you’re interested in. Depending on your financial obligations and other factors, you may decide that multiple life insurance policies will give your loved ones greater peace of mind and security.
Generally, there’s no legal limit on the number of life insurance policies you can purchase if you’re eligible to enroll and can afford the premiums. Explore your options to determine whether a combination of policies is the best fit for your family’s needs and your financial situation.
Secure your family’s future with Guaranteed Acceptance Life Insurance.
Contact GoHealth to find coverage that fits your needs.
Does Your Group Life Insurance Provide Enough Coverage?
However, employer-sponsored life insurance typically has a smaller death benefit. You might find that the coverage isn’t enough, especially if you have financial responsibilities like paying a mortgage or providing for your children’s education.
In addition, employer life insurance is tied to the employer. You may lose your employer-provided group life insurance if you leave your job. Adding another policy will give your family another death benefit they can rely on, and having your own coverage can give you greater security through changes in your employment and health conditions.
You may choose from several different types of policies, including:
Common Life Insurance Plan Types
| Type | Category | Typical Payout | Medical Underwriting | Details |
| Term | Term | No upper limit | Required | Provides temporary and/or supplementary life insurance coverage for a set period of time |
| Whole | Permanent | No upper limit | Required | Provides lifelong coverage with a death benefit that can provide income replacement and more to beneficiaries |
| Guaranteed Acceptance | Permanent | Up to $25,000 | None | Provides lifelong coverage with a death benefit that can help pay off remaining debts and burial costs |
| Universal | Permanent | No upper limit | Required | Functions similarly to whole life insurance but premiums and death benefit can be adjusted |
| Variable | Permanent | No upper limit | Required | Functions similarly to whole life insurance but includes investment component to potentially boost cash value |
Can You Have Multiple Term Life Policies?
When you apply for a term life policy, you’ll have to go through an underwriting process that determines your eligibility to enroll and how much you pay in premiums. As part of this process, you will likely have to answer health questions and get a medical exam.
Term life policies are generally less expensive than whole life insurance. When the term is ending soon, some insurance carriers give you the choice of converting your policy to whole life. If your term life policy features a conversion rider as an optional add-on, then you can join one of the carrier’s whole life policies without going through medical underwriting again. However, your premiums will probably go up.
Laddering, or purchasing multiple term life policies, is a strategy that could help you save in the long run. By staggering the terms’ end dates, you’ll enhance the death benefits during the periods of your life when you have the most financial responsibilities, such as while you’re paying a mortgage or your children are attending college. Then, as you grow older, you’ll have fewer active policies and less to pay in premiums without needing to qualify for a new policy.
Supplementing a Policy With Guaranteed Acceptance Life Insurance
Even if you already have a life insurance policy, you may find that you need more coverage to help your family afford immediate expenses when you’re gone.
Guaranteed acceptance life insurance is different from other types of policies because people between the ages of 50-85 (eligibility ages may vary based on the state you live in) can enroll without a medical exam. This kind of policy can be a good choice if you have pre-existing health conditions or if you want to add more coverage on top of your existing life insurance.
A guaranteed issue policy offers a more modest death benefit than a standard term or whole life policy, but it can provide a relatively fast payout to help with immediate expenses like funeral costs, medical bills, or debts. Keep in mind that your insurance carrier may require you to make premium payments for a minimum of two or three years before your loved ones become eligible for the full death benefit.
Choosing the life insurance that aligns with your family’s needs can protect them from difficult situations during an emotional time. Explore your options carefully to find what policy or combination of policies is right for you.
Secure your family’s future with Guaranteed Acceptance Life Insurance.
Contact GoHealth to find coverage that fits your needs.
Sources
Can You Have More Than One Life Insurance Policy? NerdWallet.
How Much Life Insurance Should You Have? Investopedia.