How many life insurance policies can I have?
You are able to have as many policies as you like with no limit on the number. There is no right answer to how many policies you should have with the most important factor being you have enough financial cover to ensure peace of mind.
What are the reasons to get multiple life insurance policies?
Just because you can get multiple policies doesn’t mean you should. So why should you get more than one policy?
Some circumstances where you could benefit from an additional policy:
You do not have enough cover in place to cover costs such as your mortgage or child’s tuition fees.
You’ve made positive health or lifestyle changes and want to search for cheaper policies whilst continuing to hold your current policy.
You would prefer to take out two single life insurance policies rather than one joint policy.
You have more than one protection shortfall. For instance, you would like decreasing life insurance to protect a repayment mortgage whilst also wanting level cover for family protection.
L&G offers protection to suit a variety of needs. If you’re looking to get additional cover, head to the life insurance calculator to estimate the amount of cover you would need.
What to consider before taking out multiple life insurance policies
Will it cost more?: The cost of life insurance is personalised. Your insurer will take into account your age, health and lifestyle. As such, there’s no guarantee you will pay the same rate with an additional policy given that you’ll be older than when you took out the first one.
Can you make changes to your existing policy?: Instead of having two life insurance policies, many customers prefer to adapt their existing policy according to their changing needs. For example, with L&G, you may be able to increase your life insurance cover without the need for further medical information following certain life events. You can also ask to make other policy changes, including your cover amount, policy length, removing someone from a joint policy, or switching between annual and monthly premiums.
What does your current policy allow?: When making changes to a life insurance policy, terms and conditions apply. You should refer to your original policy documents to check for any exclusions based on your circumstances at the time.
Why not shop around?: Making changes to a policy can affect the cost of your life insurance, so you could compare the cost of cover with different providers. You could also look into the different types of life insurance available.
Frequently asked questions on multiple policies
Can you have life insurance with more than one provider?
Yes, you can take out a policy with more than one provider. There’s no law prohibiting this and if the worst happened, you could claim against both policies. Insurers sometimes have offers for existing policyholders.
Can two people be on a life insurance policy?
Yes, two people can be covered under one policy through joint life insurance, which is a popular option for couples who want life insurance under a single plan. A joint policy usually pays out once, typically when the first person dies during the policy term, after which the policy ends.
Although a joint policy only pays out once, the surviving partner may still be able to continue their cover by taking out a new single life policy.
As a couple, is it worth having two single life insurance policies?
Yes. While many couples consider joint life insurance, it’s also possible, and sometimes beneficial, to have two single policies instead. With separate policies, each partner has their own cover, which means the surviving partner keeps their life insurance in place after the first death. This is one of the main reasons some couples prefer two policies over a joint one.
Deciding whether taking out multiple policies is right for you can be difficult. For further guidance, please visit the following page |
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