One of the questions that we at Southwest Insurance Center, serving the greater Austin, TX area are asked is whether someone can have multiple life insurance out on their life. Here is what you should know about this topic.
Can You Have Multiple Life Insurance Policies?
Yes, you are able to have multiple life insurance policies out for the same person. And in fact, many people have multiple policies, so it is not as uncommon or rare as it may sound.
Why Would You Want Multiple Life Insurance Policies?
There are a few reasons why someone may have or want multiple life insurance policies.
First, they may have one policy offered by an employer and want a second policy that offers more coverage than the free or discounted one that their employer provides.
Second, they may be locked into a policy with a great rate. If they try to increase their policy due to changes in their life, they may lose that rate. In these cases, taking out a second policy may be cheaper than changing the first policy.
Third, some parties may wish to have a policy that covers their children with their ex-husband and wife, and a separate policy for their new spouse and children. In this case, having two different insurance policies with different beneficiaries can help prevent fighting among the separate families and make it clear who gets what policy.
Are you in need of a new life insurance policy? If so, contact Southwest Insurance Center, serving the greater Austin, TX area. We can help you find the right insurance policies for your needs.