The life insurance you purchased 10 or 20 years ago may not cover all of your needs today, in which case you may find yourself shopping for life insurance policies. There’s just one problem: you already have a life insurance policy.
How Many Life Insurance Policies Can You Have?
There’s no legal limit on how many life insurance policies one person can own, nor are there any rules that limit your life insurance eligibility if you already have coverage. In fact, many people do have more than one life insurance policy. Insurers know your life circumstances and responsibilities change, so unless you’re trying to buy significantly more coverage than you need, your request shouldn’t raise any concerns.
Why Would Someone Have Multiple Policies?
Changing Life Circumstances
While your insurance needs and the amount of coverage you require changes over time, your insurance policy will remain the same. Different policies offer varying benefits, so some choose to employ a laddering strategy that involves purchasing multiple policies that expire at different times. As an individual’s debts and expenses decrease over time, so does their coverage. This laddering strategy works well for families who anticipate paying off their mortgage in a certain number of years or for a dependent to move out in the future.
Long Term Care Coverage
The reverse can also be true. As you age, you may need supplemental policies to account for health concerns and other unforeseen circumstances. Life insurance policies for seniors can help mitigate risk and ensure your loved ones are protected in an emergency. You might consider final expense insurance, which helps cover the costs of a funeral or burial.
Supplementing a Work Policy
Many people opt in to a group life insurance policy through their employer. These plans usually offer minimal coverage for an affordable price. However, you may need to have multiple life insurance policies to have enough protection to meet all of your needs. You’ll also lose this coverage when you retire or leave your job, so some choose to supplement their group policy with other insurance.
Overlapping Terms
Term life insurance offers protection for a set number of years, but when it lapses, you don’t want to be left without any coverage. Buying a new insurance policy before your old one runs out is a smart idea to ensure you have coverage even when your term policy expires.
Alternatives to Buying Another Policy
Don’t want to buy multiple life insurance policies? Some policies allow you to increase your coverage without going through the underwriting process.
You can also add a policy rider, which offers more customization to your coverage. For example, an accelerated death benefit will help cover medical expenses if you’re diagnosed with a serious illness.
Life Insurance Policies for Seniors
Life insurance is not one-size-fits-all, so you may still have questions about how many life insurance policies you can have, which policies you need, and how to make sure all your bases are covered. Contact Americo Senior Life to discuss your life insurance eligibility and how to find a policy that’s right for you. Apply online to get a quote today.