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- Not only can you purchase multiple life insurance policies, you can also purchase multiple policies at once.
- Purchasing a 20-year warranty and a 30-year warranty at the same time will help you as your savings grow.
- Adding 20 years of coverage for each child born means it lasts until the child reaches adulthood.
Many people believe that only one life insurance policy (and one death benefit) can be purchased per person, but this common misconception is not far from the truth. Not only can you take out more than one life insurance policy for yourself, your spouse, or your partner, insurance agents claim that you may have more than one life insurance policy. should do it There are multiple policies.
This means you can keep your life insurance policy and purchase additional coverage if you need it. You can also purchase multiple life insurance policies at once. I spoke with several life insurance experts to find out when it makes sense for an individual to have multiple life insurance policies.
See the insider’s picks for the best life insurance companies »
Buy life insurance to cover your workplace coverage
steve sandersF&G senior vice president of life insurance sales says having workplace life insurance can be a big benefit for employees. However, this does not necessarily apply only to workers.
First of all, Mr. Sanders notes that workplace coverage tends to be limited in gross death benefits and may not provide enough coverage to fully meet the financial needs of surviving spouses and beneficiaries. Not only that, but because workplace compensation is tied to your job, you can lose it if you change jobs or move to a new position.
“Additional insurance coverage outside the workplace can supplement the total coverage and ensure transferable benefits as individuals move from company to company,” Sanders said.
You can hop policies along your life trajectory
Financial Advisor RJ Weiss (Founder) road to wealthsays the life insurance business has a strategy known as laddering that seems to work well for families. to purchase multiple policies with varying durations.
For example, Weiss says you can buy both 20 and 30 year term insurance at the same time. With this strategy, the 20-year term insurance will expire when you have accumulated enough savings that you no longer need to activate both policies.
Consider more coverage if you have children
This advice is also related to laddering, but financial advisors Daniel Adams One person from CEG Life Insurance Services said that individuals may or may not need a large death benefit at some point in their lives.
When you’re young and newlyweds, you may just need adequate life insurance to provide financial cushion and spousal support should you die unexpectedly. comes along, it may become apparent that more coverage needs to be added.
Life insurance agent Stephen Ogle Redwood Life Group It says it’s fairly common for families to invest in standard 20-year term life insurance when each child is born. This provides tiered coverage that lasts through each dependent’s childhood (and possibly college).
decision to leave a legacy
Sahang-Hee Hahn, head of strategy and planning at Haven Life, said there are many scenarios where people’s life insurance needs change over time. Not only that, but it can also change people’s thinking around the whole point of coverage.
“As people get older and start thinking about building a legacy that will last a lifetime, they may consider purchasing additional life insurance policies,” Hahn said. It’s one of the best ways to ensure that our hard work and traditions are passed on to generations in our family.”
Multiple policies for multiple needs
Finally, financial planner Jaimin Garabedian Assurance Wealth Management said many people have more than one life insurance policy because each type serves a different purpose. For example, some people use smaller life insurance policies for simple “end-of-life insurance,” where the beneficiary just pays for the funeral, he says. But some, on the contrary, use larger policies to reduce inheritance tax when inheriting property.
Garabedian adds that some people use life insurance for specific “livelihood benefits,” such as long-term care and the tax benefits some life insurance offers.
“With all this in mind, buying multiple policies to cover different purposes is not as uncommon as you might think,” he said.