President, Lane Independent Agency, Southern California
Absolutely! You can have several policies. But you must report the existing policies usually when you place an new application for an additional one. This is to ensure that you are realistic in the total amount of insurance you will have. For example, if you are earning $30K per year, you cannot buy life insurance which would as a group of policies, total $50 million. It would sound like you are planning to make your family rich by committing suicide in a few years. Other than such absurd extremes, you can get several policies. I know several folks who have 8 policies. Thank you. GARY LANE
Great question! Many people will have a policy, and then have a second one that is part of their benefit package at work. It is entirely possible to have several policies, but the insurance companies will limit the amount that you can be insured for. They will not allow you to insure yourself for the purpose of making your beneficiaries rich, but will tie your amount of coverage to your income, and their losses when you pass. I myself have several policies, as my parents bought small policies at separate times for me when I was very young. If you have more questions, please feel free to contact me. Thanks for asking!
Yes, you can have any number of policies, as long as the total does not exceed the amount for which you are financially qualified. Sometimes having several types of policies works best for the different types of needs you are trying to cover. Some people just feel safer having their coverage spread between several different companies. It is perfectly acceptable, and sometimes preferable, to have multiple life insurance policies.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
Yes - the total face amount of coverage is what carriers are looking at. You can technically have as many policies as you want - this is commonly referred to as stacking policies. Insurance companies have guidelines for the total amount of coverage they will approve for someone though - generally about 20x income. Some companies may allow up to 25x or 30x income.
It's commonly seen when someone wants to create a combination of benefits or they're looking to secure more coverage than the maximum face amount available under a single plan (generally seen with non-medical term insurance or final expense coverage). If you're applying for fully underwritten coverage (taking an exam), you can secure a substantially higher amount of coverage under a single policy (up to the maximum allowed for your income per the company's guidelines).
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It's commonly seen when someone wants to create a combination of benefits or they're looking to secure more coverage than the maximum face amount available under a single plan (generally seen with non-medical term insurance or final expense coverage). If you're applying for fully underwritten coverage (taking an exam), you can secure a substantially higher amount of coverage under a single policy (up to the maximum allowed for your income per the company's guidelines).