Can You Have More Than One Life Insurance Policy?

Purchasing more than one life insurance policy can be a good thing. Learn more about buying life insurance for yourself and your family.

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Can You Have More Than One Life Insurance Policy?

For many people, this is a big question because they want to know how to get an additional layer of life insurance protection. The good news is that the answer is yes, you can have more than one life insurance policy, and there are some key benefits to having more than one, in fact. However, there are also some key factors to keep in mind and a few limitations that may impact who can buy life insurance and how much you can obtain.

Can You Have Multiple Life Insurance Policies?

It is possible to buy multiple life insurance policies, and for some people, this can be a very good decision to make. It is important to know that you can have numerous policies – there is no limit to the number of policies you can open. However, there is a limit to the amount of coverage you can have.


For men and women who do have a life insurance policy but it does not provide enough protection for you and your family, it can be valuable to invest in an additional policy. This may be an option for those who have taken on more debt or those who want to leave behind a higher amount of protection for your loved ones should you die unexpectedly. While it is important to consider this advantage, you also need to know what your options are for having coverage.

What Is the Benefit of Having Multiple Life Insurance Policies?

The key reason many people purchase an additional life insurance policy is because the first policy may not offer enough financial protection. For example, some people may choose to purchase one life insurance policy while they are young, but as they get older, their needs change. They want to have more funds available to their loved ones in case something happens to them. This is common in situations where a person is expanding his or her family.


Another reason to buy an additional life insurance policy is when you have a single policy from your employer. Many of the life insurance policies provided as benefits from employers have limited financial protection to you. They tend to have a low death benefit and limited actual benefits such as cash value. By purchasing another policy, you can improve your life insurance protection and customize it to fit your needs better.

Can I Have Multiple Life Insurance Policies on Anyone?

Though the movies often make it seem likely, not just anyone can take out life insurance on you. Most of the time, you can purchase a policy for yourself and name anyone you wish to be your beneficiary. However, in order to take a policy out on another person, you have to have a vested, proven connection to that person. For example, a parent can take a life insurance policy out on a child. A spouse can take a policy out on the other spouse. You cannot necessarily take a policy out on a friend, though, unless the death of that friend would cause you financial hardship – which could mean that you receive financial compensation from them.

What Are the Restrictions on Multiple Life Insurance Policies on One Person?

There are a few key limitations on purchasing numerous life insurance policies. As noted, you can have several policies – the number of policies is not necessarily restricted. However, you may be limited to the total amount of coverage you can purchase across all policies. Generally, you cannot obtain more than 15 to 30 times more than your income. There are various factors that play a role in the amount, such as your age and your health. In most situations, you can obtain more coverage if a life insurance company is willing to offer it to you. If not, then you may be unable to expand your coverage.

How to Buy More Than One Life Insurance Policy

You can buy more than one life insurance policy by working with an insurance agent. Most companies will offer you a policy based on your age and health. It is worth comparing all of your options to ensure you get a policy that fits your goals and that you are getting the best rate available.