Can You Get Life Insurance from Two Different Companies?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Can You Get Life Insurance from Two Different Companies?

Yes, you can obtain life insurance coverage from two or more companies. There’s no legal limit to the number of life insurance policies you can have. However, you must not exceed the total amount of insurance for which you are eligible based on your income and other factors. This practice is known as not being “over-insured.”

Related Reading: Get the best life insurance quotes with our life insurance calculator

Advantages of Multiple Life Insurance Policies

  1. Risk Diversification: If one insurance company faces financial difficulties, your coverage is still partly secured by other companies.
  2. Varied Products: Different insurers offer a range of products. By diversifying, you can tailor coverage to your specific needs.
  3. Individualized Rates: Insurance companies have unique underwriting criteria. By exploring different insurers, you might find more favorable rates based on your personal situation, such as health, lifestyle, and age.

Considerations for Multiple Policies

  • Underwriting Process: Each policy you apply for will undergo its own underwriting process. This can be time-consuming and may require multiple medical examinations.
  • Policy Management: Having multiple policies means managing different premiums, terms, and conditions. It’s essential to keep track of these details to ensure that each policy remains in force.
  • Financial Justification: Insurers will require a justification for the total amount of insurance you’re applying for. Your coverage should align with your financial needs and not exceed what is considered reasonable.

Comparison of Two Different Life Insurance Policies

FeaturePolicy APolicy B
CompanyPacific Life American National
Coverage TypeTerm LifeUniversal Life
Premium$50/month$350/month
Coverage Amount$500,000$500,000
Term20 yearsLifetime
Cash ValueNoYes

Conclusion

Having life insurance from multiple companies can offer diversification of risk, access to varied products, and potentially better rates. It’s important to manage the policies carefully and ensure that the total coverage is justifiable. This approach can provide a comprehensive safety net tailored to your personal needs and circumstances.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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