Life insurance is a must for virtually everyone, and you know if you’ve purchased a policy, it’s not for you, it’s for them.
That’s because life insurance is a way for those who depend on someone financially to carry on with life – to stay in their home, send their kids to college, and to keep some semblance of the life they knew before a breadwinner passed away.
If you’re purchasing life insurance, or if you’re a beneficiary, you might be wondering if it’s possible to have more than one policy, or to claim on multiple life insurance policies. The short answer is yes.
According to Insure.com, “you can have multiple policies from the same or different life insurance companies,” and a reason for that may be to fill different needs.1 Insure.com gives the example of having a “permanent life insurance policy like whole life and also a term life policy for a shorter need.” You should speak with a financial advisor or a licensed insurance agent to determine what type(s) of life insurance you should buy and to determine the total amount.
When you’re buying life insurance, you can plan out what you’d likely need over different times in your life and buy insurance accordingly. NerdWallet tells us that if you need a large total amount of life insurance, “instead of buying one large policy, you could buy multiple policies of different lengths and amounts to match needs over time,” which is known as a “laddering” strategy.2
Not only can one purchase multiple life insurance policies, but a single beneficiary can claim on multiple life insurance policies as well. Tomorrow Makers maintains that it is “legal to buy and hold more than one life insurance policy,” and “your beneficiary can rightfully claim from all the life insurance policies you hold in the unfortunate event of your death.”3 Tomorrow Makers goes on to state that multiple policies offer an additional level of protection that you might not get from a single policy.
If you have any questions about purchasing multiple life insurance policies, contact a financial advisor. If you have questions about claiming on multiple policies, contact the insurance companies from which the policies were purchased.
Insure.com, Frequently Asked Life Insurance Questions , 2019
NerdWallet, Can You Have More Than One Life Insurance Policy?, 2018
Tomorrow Makers, Death Claim: Is It Possible To Claim From More Than One Life Insurance Policy?, 2018
Categories: Insurance, Life Insurance