In the UK, you can legally have more than one life insurance policy in place. However it doesn’t always make sense to have multiple insurance policies and you may find it more beneficial to stick with just one policy and change the terms to meet your current needs. Some people do actively seek (or end up with) multiple policies though - for example having a single policy in place, as well as having a joint policy with their spouse. You may also have a ‘death in service’ benefit through your employer.
In most cases, it’s easier and more cost effective to change the terms on a single life insurance policy, rather than having multiple policies. You can usually alter the terms of your life insurance to suit a change in your circumstances; like if you get married, buy a home, or become a parent. Common policy changes include the level of cover, the length of the term, increasing or decreasing the amount insured.
Why would I need two life insurance policies?
For most people, one life insurance policy (whether it be single or joint) – should provide adequate cover. However you might want more than one life insurance policy if:
You want a separate joint life insurance policy that pays out should you or your partner or business partner pass away within the term.
You have several different liabilities to cover and want to tailor each life insurance policy to each specific need.
You want to avoid or reduce the amount of inheritance tax your family would need to pay, so you require a separate life insurance policy held ‘in trust’ so it won’t be included in the final value of your estate.
You may receive life insurance cover from your workplace – this is often known as death-in-service life insurance. It’s usually based on a multiple of your annual income, but this ties you to your employer and may not be enough to cover your mortgage and living costs, so a seperate life insurance policy is usually a good idea. It’s also worth noting that if you leave your employer, you will likely lose your death-in-service benefit they provided.
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At Cavendish, we do our best to make it as easy as possible to find the best policy for you – just let us know a few of your details and what you need from the cover, and we’ll do our best to find the right product for you.
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If you don’t currently have any cover in place or you’re unsure if your cover still meets your needs - the team at Cavendish can help. Speak to us today for more information and to get a quote for life cover.
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