Here’s what you must know about having several life insurance policies as one individual. You receive life insurance to protect the ones you love against the unpredictable. Life insurance also provides you a chance to defend yourself against the unexpected. But because your life insurance needs to change over time, there’s a big part of why it might make sense to have several life insurance policies. Here’s what you must know about having several life insurance policies as one individual.
Are You Allowed to Have More Than One Policy?
Absolutely. You are allowed to have several life insurance policies. Both couples and individuals can have multiple of them. However, there are limits to how much life insurance coverage you can purchase. Although insurance companies don’t care how many policies you have, they care about your overall policy benefits. Here’s why there’s a cap to how much life insurance you can receive. Each life insurance policy has a death benefit. This death benefit is supposed to assist their transition to life without you, not make your family reach overnight.
The Limit on Several Life Insurance Policies
To ensure your total death benefit aligns with your family’s actual financial needs, almost all life insurers work with an organization known as the Medical Information Bureau (MIB). In addition, they all share information within that group, especially about how much life insurance you have with them. For instance, the amount of coverage you can generally receive corresponds with your age and income level. Plus, you can possibly get life insurance death benefits totaling around 30 times your yearly income if you are under age 40.
Even though you can receive several life insurance policies, insurers will deny your applications if you apply for plans with a total death benefit exceeding the above limits. Remember that life insurance companies will not deny the several policies but the overall death benefit.
You’re in the right place if you ever asked, “Can I have several life insurance policies?” Contact The MWE Partnership at 410-394-9617 or fill out this online form for questions or information about applying for multiple life insurance policies.
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