Examples Of Multiple Life Insurance Policies
As stated above, it is very common to pair different types of policies together to cover certain assets and financial responsibilities. Here are some examples:
- Level term: Value of payout holds value throughout term
- Over 50’s plan: Guaranteed acceptance with no underwriting
- Decreasing term: Value of payout decreases throughout term
- Family income benefit: Provides a tax-free monthly income
- Whole life: Guaranteed payout when you die
- Funeral plan: Pays for the cost of your funeral
If you’re looking to cover different aspects of your life, for example, a mortgage and funeral costs, it’s likely you would benefit from having multiple policies.
In the above examples, it may be beneficial to have a decreasing term policy to cover the value of your mortgage, as well as, family income benefit to provide ongoing monthly payments to meet your family’s living expenses when you’re no longer around.
Can You Claim on Multiple Life Insurance Policies?
If you have more than one life insurance policy, your loved ones can receive a payout from the individual policies, leading to a larger overall sum. However, they will have to claim on each individual policy and provide necessary details.
Is It Beneficial to Have Multiple Life Insurance Policies?
Depending on your financial circumstance, adopting an all-encompassing policy or multiple policies is up to you. However, as discussed, it can be beneficial to purchase multiple layers of cover to ensure all financial responsibilities are covered.
It is also important to note that having multiple policies will require multiple premiums, therefore a larger budget.
If you need help deciding whether purchasing multiple policies is for you, then contact us here.