The simple answer is, yes, but let’s delve a little deeper into it.
If you have already explored our website and know a little about life insurance policies, you’ll know that there are two main types; term life and whole life. Term life insurance lasts for a limited period of time, whereas whole life will guarantee a payout. Given this, it is possible to layer various types of policies to cover certain financial responsibilities you may have. For example, this may be your mortgage, children, spouse, or funeral costs.
It is important to note that when you apply for different types of policies at once, your insurer will evaluate your current situation and decide whether or not you require that cover. If the level of cover you applied for is not deemed appropriate for your situation then your chosen provider may not cover you for that amount.
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
Paired with… - Over 50’s plan: Guaranteed acceptance with no underwriting
- Decreasing term: Value of payout decreases throughout term
Paired with… - Family income benefit: Provides a tax-free monthly income
- Whole life: Guaranteed payout when you die
Paired with… - 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.
If you are unsure about which policies might suit your needs best, then consider speaking to an adviser, as they will be able to make recommendations for your cover and help prioritise your protection needs.
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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.
Do Multiple Policies Need to Be Purchased at the Same Time?
You don’t need to purchase the policies at the same time, however, a discount may be possible if you do. As different types of policies will cover certain assets, it’s normal for you to develop a need for different cover over time. This means that it wouldn’t make sense for you to purchase multiple policies at once.
For example, you may purchase a decreasing term cover when you buy your first home to protect your mortgage. Then a couple of years later, you may have a child and therefore want to also purchase the family income benefit to provide financial support for your family.
However, if you already had a child and were about to buy your first property, then it may be worth taking both covers out at the same time. You may be able to incur a discount on these too.
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.
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Our team of friendly and professional advisers are on hand to help with any questions you may have regarding Life Insurance.
The advisers can also make recommendations tailored to your current situation and will research the market on your behalf, ensuring you secure the cover you need and supporting you every step of the way.
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