As you get older, you find yourself with so many different financial responsibilities and commitments. From mortgages to car finance payments, the list seems never-ending. However, one area of your personal finances that you may be neglecting is your life insurance.
While it can be easy to bury your head in the sand when it comes to getting the right life insurance policy for you, many people don’t really know what they are looking for. If you already have a life insurance policy in place then you may be wondering – can you have multiple life insurance policies?
The answer is, yes!
Ok, so now that we have answered the burning question of ‘can you have more than one life insurance policy’- here is all the extra information you need to know to help you find the right policy to get your finances in order.
Read on to find out more about how many life insurance policies you can have, what types of life insurance policies are out there, and how many life insurance policies you need…
How many life insurance policies can I have?
There is no legal limit to the maximum amount of life insurance policies you can have, but just because you can have as many as you like doesn’t mean that you should!
As you get older, you will likely have different financial responsibilities and priorities, which could mean that you need to update or review your life insurance coverage over time.
Why should you have multiple life insurance policies?
Generally speaking, you only need as many policies required to cover all of your financial obligations. So, the more financial agreements and repayments you are responsible for each month, the more policies you should expect to have. Therefore, most insurers won’t approve you for additional cover if it isn’t deemed required or essential.
When you initially look into getting a life insurance policy then it may be because you have bought your first house or have started your own family and want to ensure they are protected. But as you get older, you may decide to get additional cover for other areas, such as inheritance tax and funeral costs. This is where multiple life insurance policies come into play.
How many life insurance policies do you need?
You need as many life insurance policies as you have financial responsibilities. It is possible to combine all your life insurance obligations into one policy, but this will require you to pay for it over the longest period of time to ensure that everything is covered.
Thus, it makes sense to have separate life insurance policies for different assets or obligations so that your family is protected in your absence.
Types of life insurance policies
One of the biggest challenges you face when it comes to getting life insurance is finding the right type of policy for you. There are many different life insurance policy options, and each will be tailored to a specific area or aspect of your finances. Some of the most common life insurance policies include:
Term life insurance – this policy provides cover for a specific time period which can be up to around 40 years.
Whole of life insurance – as you would expect, this policy lasts for as long as you live and is guaranteed to pay out for as long as you live, so long as you maintain the premiums.
Over 50s plan – guarantees a life insurance plan to over 50s without requiring any medical information. It grants cover for the rest of your life and offers a guaranteed payout to your family.
Family income benefit – instead of a lump sum payout, this provides a regular income for your family in your absence. It provides an annual income until what would have been your retirement age or when your dependants come of age.
These life insurance policies are available to protect and cover different areas of your life, each with its own financial obligations. Therefore, you have the option to choose multiple of these policies and layer up the protection you have in place.
Can you claim on more than one life insurance policy?
Yes, while you can have more than one life insurance policy in place, you can also claim multiple payouts. For example, if you are the beneficiary of a number of different policies, then you can claim individually on each plan. However, you may be asked to fill in a multiple claims form which will require you to provide information about each policy.
Provided all the information you provide is true and accurate, and all the payments have been made, the policies will remain valid and you will be able to issue payouts.
However, if any of the details that you provide do not match or seem to be falsified then your policy could be deemed invalid and a payout could be denied.
But don’t worry, as each life insurance policy you have is evaluated individually, so having one denied shouldn’t impact the other policies you have.
Why you should use a broker for life insurance
Now that you know how many life insurance policies you can have and the different types of policies available to you, you need to know where to go to find the best options.
While there are many different life insurance providers out there, we recommend that you use an experienced broker who will listen to your unique situation. A knowledgeable life insurance broker will explore the whole market to ensure that you get the best deal with coverage that matches your exact circumstances.
It can be difficult to navigate life insurance policies by yourself, especially if you have a range of financial obligations that you would like to find cover for. Therefore, by using our specialist brokers, they will do all the hard work for you, and assist you in finding the best options suited to your circumstances.
Our own team of specialist brokers have the industry knowledge required and can offer you the personal support needed to help you make the best financial decisions.
Book a free consultation today to get specialist advice from one of our expert and friendly advisors. No matter what your life insurance needs are or any of the concerns you may have, we can help you find the right coverage that best suits you and your loved ones.