You might want several life insurance policies if your current temporary life policy would only cover a portion of your final expenses. You can supplement your temporary policy with final expense insurance to make sure your family doesn't have to worry about paying for your funeral and other end-of-life expenses. While you may have more than one life insurance policy, the total amount of coverage you can get will be limited. That limit is linked, in large part, to your income or net worth.
Yes, you can have more than one life insurance policy. There are several reasons why you may choose to have several policies, including some that are very specific and others that may be more extensive. For example, let's say you were a small business owner or had other contingent financial needs. In that case, it might make sense to maintain a policy with purely financial coverage and another with more specific coverage.
Likewise, you may want to consider buying additional policies if the one you have is nearing the end of its term or doesn't offer the right coverage for your needs. However, you'll have to disclose all your policies to the life insurance company when you apply for coverage. Yes, it's perfectly legal to have more than one life insurance policy. Assuming that you continue to pay your insurance company, the permanent policy won't expire until you take it out (for example, when you retire) or you die.
Buying several life insurance policies can be a smart way to get additional coverage to cover a specific debt, such as a mortgage, or if you want to implement a more complicated financial strategy, such as the tiered strategy. Insurers will verify the information you provide by consulting the MIB Group database, which contains files on consumers who have applied for life insurance. Term life insurance is the most popular type of life insurance, mainly because temporary life insurance rates are often more affordable than comprehensive life insurance (a type of permanent insurance). Mark Fitzpatrick is senior content director at MoneyGeek and has more than five years of experience analyzing the insurance market, conducting original research, and creating content that can be customized for each buyer.
Maria Filindras is a financial advisor, 26% licensed life insurance agent in California and a member of the Policygenius Financial Review Board. When buying life insurance, it's critical to work with an independent agent who can help you compare different policies and find the best coverage for your needs. If you're a small business owner, a personal life insurance policy is especially important because you may not have employee benefits, such as a retirement account, group life insurance, or disability insurance. Keep in mind that your income isn't the only factor that insurers will consider when deciding how much coverage you qualify to buy.
For example, you might want to take out an affordable 20-year term insurance policy while your children are at home and let the policy expire at the end of the term. Final expense insurance is a type of permanent insurance in which the death benefit is used to cover expenses related to the end of life. Your age plays a key role in determining the coverage that life insurance companies can offer you, regardless of the number of policies you have. There are no limits to how many life insurance policies you can have, and there are some situations where having multiple life insurance policies can help you plan for your financial future.
That way, you're covered for life, you're accumulating cash value, and your spouse will always have that protection. Yes, you can apply for several life insurance policies with different insurers, although doing so at the same time can delay or complicate the application process.
