Is there a maximum amount of life insurance​ you can get?

When you're looking to buy life insurance, one of the key questions to ask yourself is how much cover do you need? Everyone's situation is different, and some people may need more than others.

It’s important to make sure you don’t underinsure, just as it is to avoid over insuring. But is there a limit to how much cover you can actually take out?

What is the maximum amount of cover for life insurance?

There's no maximum amount you can be covered for by life insurance. Instead, it will depend on the insurer and your personal circumstances.

You may be able to apply for cover running into the millions, but whether you’re approved for that level will depend on things like your age, health, and risk.

If your insurer deems you to be a risk, for example, if you have a medical condition, they may not wish to insure you or charge more for cover. Learn more about determining how much life insurance you need.

What is the minimum amount of cover for life insurance?

Again, this varies by insurer. Some policies have a minimum starting point, in most cases, between £10,000-25,000. While others are more flexible and let you choose a lower amount.

This may depend on the type of policy you want. For example, if you're taking out term life insurance to cover a mortgage, you may only wish to have a cover amount that matches the remaining balance. Whereas if you plan to take out a whole of life policy, you may wish to have a larger amount of cover.

Can your life insurance cover be limited?

Insurers can place limits on how much they’re willing to cover you for. This could be due to your age, health, lifestyle, or the size of the policy you’ve asked for. For higher sums, you’ll often be asked to provide more detailed medical information, and in some cases a medical exam, before cover is agreed.

Policies like over 50s life insurance aren’t medically underwritten, so you won't need to answer any health questions or undergo a medical exam. Because of this, cover amounts are typically lower than for standard policies. These policies also tend to have higher monthly premiums due to your risk.

Why does it matter how much cover you have?

Along with the type of policy you choose, the amount of cover you have is one of the most crucial aspects when it comes to buying life cover. Having too little can leave your family vulnerable during difficult times, potentially struggling financially.

Whereas having more cover than needed can mean paying more in premiums than is necessary. The amount itself may not be too costly, but could be put towards other costs.

To work out a suitable amount of cover, think about what support your loved ones would need if you suddenly passed away. This can include costs such as mortgages, everyday expenses and even your own funeral costs.

Can you have more than one life insurance policy?

A common question people have is whether they can have multiple policies so they have additional cover. The good news is, yes, you can have more than one life insurance policy. In some cases, you may already have a policy through your employer and wish to have extra cover.

If you and your partner share financial responsibilities, it may be worth getting a joint life insurance policy. It covers two people under a single policy, often cheaper than taking out separate policies.

If you're unsure how much cover you need or which type of policy is right for you, Cavendish Online can help. Our friendly advisors are available to guide you through the process, helping you make informed decisions that suit your personal circumstances.

Already know what you need? You can apply for a quote through our website for our lowest premiums, and you could be covered within 30 minutes.

Please note: The insurance products offered by Cavendish Online have no cash-in value at any time. If you stop paying your premiums, your cover will stop, your policy will end, and you will receive no benefit. For term life insurance, if you have not claimed before the end of your chosen policy term, the policy will end, and no benefit will be paid.