The short answer to this common question about life insurance is, yes. Certainly, from a legal standpoint, there are no rules preventing you from having more than one active life insurance policy at any given time. So, you are allowed to have multiple such policies, whether you have them from the same life insurance provider, or even with different companies.
But it’s one thing to know that you technically and legally can have several life insurance policies, and quite another thing to determine whether you should have more than one policy.
You can have more than one policy, but is it necessary?
There are various common reasons why people consider taking out another life insurance policy on top of their existing one.
You might like the life insurance policy you have now, but you may not feel that it covers all of your current financial responsibilities - such as a mortgage or your children’s tuition fees - to the extent that it should.
Or perhaps you have made positive lifestyle changes lately, such as quitting smoking, and would like to see whether more attractive premiums are available as a result of this, while still benefitting from the cover your existing life insurance policy provides?
We could go on and on listing different possible circumstances, and you might think, “well, what’s the harm? More than one life insurance policy, means more layers of protection.”
The reality, though, isn’t quite as simple as that. It’s worth bearing in mind, for instance, that you will be older when you take out any new life insurance policy, than you were when you purchased your existing one.
And the older you are, the higher the risk potential life insurance policy providers will regard you as presenting, and the likelier you are to develop health problems. That, in turn, could push up your premiums beyond what you are paying on your current policy.
Might you be better off, then, just modifying your existing policy?
Our team at QuoteLifeCover.com obviously can’t give advice covering everyone’s circumstances in a single blog post. That’s why we provide our free, no-obligation advice and quotation line, on 0800 316 6917, which can quickly put you in touch with a UK adviser who can help you determine the best route forward for your needs.
And some people might still conclude that they can best meet their needs by taking out another life insurance policy alongside what they already have - for example, because they are in a couple and wish to purchase separate single life insurance policies to go with their existing joint policy, or vice versa.
Some other people, though, might get talking to their life insurance provider, and realise that it would be easier and more cost-effective for them to simply modify the terms of their existing policy. You could change such aspects of your current policy as the level of cover or the length of the term, to reflect changes in your broader life such as getting married or welcoming a new addition to the family.
Naturally, whatever you choose to do with your life insurance arrangements, you should always carefully check the terms and conditions that will apply to any new or changed life insurance policy, to ensure you are protected for your own requirements and circumstances. Simply give us a call today, and we will be pleased to provide further tailored advice and guidance.