Yes, a person can have multiple life insurance policies. When you apply for a life insurance policy, you will be asked to list your current life insurance on the application. This is simply to see if you are replacing a policy, and if you have enough income to qualify for the total amount of life insurance taken out on your life.
You may have multiple life insurance policies. It might be a great idea for you to have multiple life policies for different reasons. You could use a permanent policy such as Whole Life or Universal Life for final expenses or the cost of your funeral and burial or cremation. You might use the same permanent policies for providing an inheritance to your loved ones or gifting to a favorite charity. A permanent policy provides a tax favorable death benefit and a larger amount than just passing on money.
Temporary or Term Insurance can provide more protection for the dollar when the protection is needed for a period of time. You can protect family income or debt payoff in the event of a death. You can protect a family from the burden of a mortgage when somebody dies. You are providing protection in the event a member of the family dies.
Your limit of the amount of insurance is determined by each company in a unique way. You and your life insurance agent need to look at your situation and determine the best option for you.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
Yes, many people have multiple life insurance policies! Some people start at a younger age and purchase a smaller policy then at later stages in life purchase additional policies. Sometimes a whole life policy may be "layered" with one or more term policies. That is usually because more insurance is wanted or needed for a limited period of time while for example there is a mortgage obligation. Also as a whole life policy continues in force, and it's issued by a "participating" mutual company, the value of the death benefit, (amount of insurance) may grow. So in that case the value of the whole life policy will have grown to a value where upon the termination of the additional term policy is no longer needed.
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Temporary or Term Insurance can provide more protection for the dollar when the protection is needed for a period of time. You can protect family income or debt payoff in the event of a death. You can protect a family from the burden of a mortgage when somebody dies. You are providing protection in the event a member of the family dies.
Your limit of the amount of insurance is determined by each company in a unique way. You and your life insurance agent need to look at your situation and determine the best option for you.