Can You Have More Than One Life Insurance Policy?
Key Takeaway
The short answer? Absolutely. Yes, you can have more than one life insurance policy—and you can even have different kinds of policies (from different companies!). Even if you already have term life insurance, which may only have a limited number of years left, you can add universal life insurance and have a policy that may extend beyond the term of your other policy.
Should I buy more than one life insurance policy?
Does having more than one life insurance policy make sense for everyone? Maybe not. But depending on your situation, there are some good reasons to buy more life insurance. Let’s take a closer look.
More coverage. You might need more coverage, or simply have different goals for the coverage, because your family or financial situation has changed—for instance, if a breadwinner dies—or as a supplement to life insurance provided by your employer.
Small-business needs. Let’s say you own your own business. In certain scenarios, you might want a term policy to cover your family and another to cover business obligations that will eventually have to be repaid.
Additional savings. If you only have a term policy, you might want to consider adding a universal life policy In addition to providing a death benefit, universal life insurance contributions may provide extra value that grows over time.
What’s insurance laddering?
Many people employ a technique known as “laddering life insurance,” which means adding policies as their finances change. You can add another policy to cover additional current expenses, such as a mortgage or college tuition. Typically, insurers will inquire about your current coverage to better determine what a reasonable amount might be. You might get further scrutiny, however, if the total coverage were to exceed, say, 20 to 30 times your income.
For some people, a laddering strategy can be a wise move and save them money. Rather than purchase a single large policy, such as a $1 million, 30-year policy, buying multiple policies with different amounts and lengths can suit your needs over time. Life can be pretty unpredictable, as we know.
Got questions? Reach out and chat with us! Or give us a call a 855.290.0529.
At Everly, we’re here to help.
This information is intended for educational purposes only. It does not reflect the availability of products or product features unless specifically stated, nor does it alter the terms, conditions, exclusions, or limitations of policies issued by Security Benefit Life Insurance Company (SBL), Topeka, KS.