Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
Yes you can, but there may come a point where the amount of coverage that you have combined may put you at a company's coverage limit when they complete a needs assessment. In other words, Life Insurance Companies look at your financial circumstances with regard to income, investments, savings, debt etc in relation to the obligations you have to your dependents when considering your application for coverage.
Yes, you can have multiple term policies. In fact, sometimes we will use multiple term polices in a clients strategy. For example, Let's say you want $500k while the children are living at home. And after they move out, you only want $300k for about 20 years after. So if your kids move out in say 10 years, you might get a 10 year term policy for $200k and a 30 year term policy for $300k. This gives you $500k while the kids are home and then drops to $300k for an additional 20 years after they are out.
And remember, there is a policy fee which you pay, which is built into the premium. Some companies will way multiple fees when you use a strategy like this, or as it is referred to sometimes, a layering strategy.
If you would like to see any example of this might look like for you, feel free to reach out to me.
President, Lane Independent Agency, Southern California
Yes, you definitely can. I have clients who have 8 different life policies. They add them as their incomes increase. The only limit on the number of life insurance policies you may have, and that includes term life policies, is what your current income, assets and net worth may responsibly need. For example, if you earn $50,000 a year, you are not likely to be able to get a total of $10,000,000 in life policies. The carriers do not want to encourage people to commit suicide in order to bring unreasonable wealth to their families. However, you can ensure that your family has all the assets it needs to survive well after your death. Suicide, by the way, voids most policies IF it is done within 2 years of application. Thank you. GARY LANE.
Yes, you can have as many life insurance policies as you wish, as long as you qualify financially for the total amount of coverage you own. Sometimes, it can be more cost effective to take multiple Term life insurance policies, especially if you only need a small portion of the coverage for a very long time. Sometimes, it is better to combine policies, such as: if you used to smoke and no longer would be charged tobacco rates; if the industry premiums are lower now than they were when you purchased a past policy; if your had a health problem in the past that has since been resolved; or if you are paying policy fees on several policies and can save money by combining all your coverage into one policy.
President, Lane Independent Agency, Southern California
Yes, absolutely! The only thing the carriers will care about is whether the total death benefits for all of them combined exceed by too far, the amount of income you could be expected to earn over the course of about ten years. Thus if you are a typist, and you are requesting a total of $10,000,000 in insurance, you will be declined on the latter applications. They want to be sure you are not extremely over insured, giving you and incentive to commit suicide to benefit your family's income. Thank you. GARY LANE.
Yes, you can have multiple Term Life Insurance policies. Let's say you purchased a 30 year Term policy of $250,000 when you were in your early 20's. Now you're in your 30's, have a spouse and a couple of children, and need more coverage to protect your family. You do not need to give up the excellent rate you have locked in on your current $250,000 policy. You can simply add a new policy to it.
Yes, you can. Sometimes people will purchase multiple policies in case their income stream drastically changes. If they only have one 500k and couldn't make the full payment, the policy would lapse. However, if that same person has 2 policies for $250k each, they would be more likely to make at the payment on one of the policies. This way they are able to maintain partial coverage.
That is a great question! The answer is yes, and many people do, but there are limits. It is very common for people to increase their coverage as their lives change. Insurance companies recognize those needs, and will issue additional policies. They will limit what you can add though. Since the purpose of life insurance is to protect against loss, and not to get rich, the companies will limit the amount of coverage that you can ask for. I'd love to know more about your situation, and why you want to add more term coverage, if you inbox me, I'll tell you why. I hope that helps, thanks for asking!
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And remember, there is a policy fee which you pay, which is built into the premium. Some companies will way multiple fees when you use a strategy like this, or as it is referred to sometimes, a layering strategy.
If you would like to see any example of this might look like for you, feel free to reach out to me.