Can I have more than one life insurance policy?

How many life insurance policies can you have?

You can have as many life insurance policies as you wish. In fact, there’s no legal limit to the number of policies you can have. Taking out multiple life insurance policies with different providers can give you better coverage and access to various benefits. However, some providers offer discounts and rewards to those with more expensive policies, so you may get a better deal by sticking with just one provider and taking out a higher level of cover. 

Whether you take out one life insurance policy or several, it’s wise to review your insurance regularly to make sure it’s still right for you. This is particularly true if your circumstances change in the years after taking out a policy. And with new insurance products entering the market every month, the best policy for you today might not be the best policy in three years’ time. 

Learn more: Is critical illness cover worth it?

Is it worth having two life insurance policies?

Whether it’s worth having two life insurance policies depends on your personal circumstances and your reasons for wanting the additional cover. For some people, having two or more life insurance policies is the only way to access the level of cover they need. For others, the monthly expenses can far outweigh the potential benefits. This is why we’d always recommend getting independent advice from protection specialists like our team before taking out a new life insurance policy. 

When comparing life insurance policies, you’ll need to work out whether the additional cover is worthwhile and how affordable it’ll be in future. After all, you’ll be paying your monthly premiums for the duration of your policy and perhaps even until death. 

If you experience a fall in income and you need to cut costs, cancelling your policies to save money could make things harder for your loved ones in future. 

If you’re not very good with paperwork, consider how easy you’ll find it to manage your budget and review multiple insurance policies regularly. Alternatively, talk to Tembo! We can take most of the admin off your hands and review your policies for you. Not only that, we can also compare insurance providers from across the market to find the right protection for you. 

Why you might have more than one life insurance policy

1. Your circumstances have changed

If you’ve bought a house, had a child or experienced a change in your relationship status, your existing life insurance policy might no longer be suitable. 

The good news is, your provider may be able to make the necessary changes to your policy without increasing your premiums significantly. But if they’re unable to make any alterations or you’ve found a better deal elsewhere, it might make sense to take out a second life insurance policy.

2. Your employer offers a ‘death in service’ benefit.

Some employers offer group life insurance aka ‘death in service’ benefit. If your employer offers this type of benefit, your beneficiaries would receive a payout if you were to pass away during your time at the company. The exact payout can vary depending on the policy’s terms and conditions, but it tends to be worked out as a multiple of your salary. 

If you have death in service cover, you’ll need to work out whether the payout would be enough to provide for your family. You could take out your own life insurance policy to make up any shortfall. 

3. You and your partner both need life insurance

If you’re in a relationship, you and your partner could take out individual life insurance policies, a joint life insurance policy or a combination of the two. The right arrangement for you depends on your personal circumstances and how much coverage you need. 

Unlike two single policies, joint life insurance will only pay out once. This means that the coverage will end after the death of the first policyholder. If you’d like your coverage to continue after that, you’ll need to have a single insurance policy in place too. 

It’s possible to take out a single life insurance policy after the first policyholder passes away, but since your age and health will be taken into account when applying for a policy, this could make your premiums more expensive. 

If you and your partner have a joint policy and your relationship ends, your insurance provider may be able to separate your policy. If not, you’ll need to take out new individual policies to continue getting coverage. This can of course work out more expensive than if you’d applied for two single life insurance policies from the start, since you’ll be older when applying for your new policies.

4. You’ve found multiple suitable policies, each with different purposes 

If your needs are complex, one single or one joint life insurance policy might not meet your needs. For example, you could use decreasing life insurance to cover your repayment mortgage and a level term policy to offer additional protection for your family. 

Some providers have generous rewards programmes designed to help you stay healthy. Vitality, for example, offers discounts on gym memberships, sports watches and even cinema tickets to those with a qualifying insurance plan. If you’re a fitness fanatic or you’re looking to improve your health this year, this type of policy could be rewarding — but it might not be worth giving up your existing cover in the process. 

Learn more: Is income protection worth it?

Can you claim on two insurance policies?

Yes, it is possible to claim on two insurance policies. If you have two or more policies, your loved ones will need to make multiple claims if you pass away during your policy term. 

To make things easier for them, we’d recommend creating a folder where you store relevant insurance documents. You could also include instructions on how to make a claim. Make sure your loved ones know where the folder is kept so they can access it if they need to. 

No one wants to think about losing friends and family members, but having these uncomfortable conversations can make life that little bit easier when the unthinkable happens.