It is both possible and legal to own more than one life insurance policy from a single or multiple insurer. However, is it really necessary to have multiple policies? Isn’t it simpler to just have a policy that covers everything? While this may not be the case for everyone, a lot of people find it beneficial to get multiple life insurance policies. Here are two scenarios where multiple policies become very useful.
When in Need for Temporary Extra Coverage
You may want to increase the coverage of your whole life insurance for a period of time, for instance to cover for your children’s education and living expenses in case you would pass away early, you can try increasing the benefit you will get from your whole life insurance by paying more premium.
However, this may be expensive now that you’re older than when you first got your whole life insurance, which means you’ll pay more premium for the extra benefit. Not to mention that you’re bound to pay the higher premium for the rest of your life. With a second term life insurance, you can get covered only for as long as you need the extra coverage.
When your children have grown up, you can let the second insurance expire. In the end, a second insurance will give you both cost savings and flexibility.
When Insurance from Work is Not Enough
Life insurance coverage from your workplace may only provide very limited benefits. In many cases, you can only make a claim through the company’s life insurance policy only if you’re an active employee in said company.
This means that once you quit or lose your job, you’ll also lose your life insurance policy. Combining life insurance from work with whole life and term life insurance that you purchased yourself will make sure that your beneficiaries will always be covered when something happens.
Take note that even though having multiple insurance can provide cost savings, this may not be true for all cases. There are fixed annual policy charges that you need to pay, and the more policy you have the higher the charges will be. Make sure to put those charges into consideration before choosing to get multiple policies. Don’t hesitate to contact one of our agents to know more about life insurance policies that are best suited for your specific needs.
At the Roper Insurance Services, we work hard in making sure that our clients are well-protected with policies that they can afford. To learn more about how we can help you, please contact our agency at (828) 697-6709 or Click Here to request a free quote.