If you recently got a bigger mortgage, a significant raise, or added more children to your family, here’s why you may want to consider getting more than one life insurance policy. 

Life is full of unexpected occurrences which you may never see coming, which is why it’s so important to invest in a life insurance policy that will protect your family and home in the event that you die prematurely or become critically ill.  

Investing in a life insurance policy is particularly crucial if you are the main income provider for your home. You may want to consider investing in this product if:

  • you have young children
  • your mortgage requires both yours and your spouse’s salaries for payments
  • you’re a business owner and you want to protect your company
  • you earn the larger share of the income to support your family’s lifestyle

20/20 Flex Life Insurance

At 20/20, we strive to make buying life insurance as simple, stress-free, and affordable as possible. Whatever your family’s needs, budget, and goals, our licensed agents work tirelessly to ensure you have a policy that protects your family and home in any situation.

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Can You Own Multiple Life Insurance Policies?

One of the most common questions asked is whether or not it’s legal to own more than one life insurance policy. Not only is it perfectly legal, it often makes a lot of financial sense.

Life insurance is built for protection. It provides security for your loved ones from financial turmoil in the event that you were to die prematurely. There are two basic types of life insurance:

1.Term Life Insurance. Term life insurance lasts for a specific period of time in your life.

2. Whole Life Insurance. Whole life insurance is a policy that will last for your whole lifetime.

Both of these policy types will pay out a death benefit to your beneficiaries in the event you pass away, as long as your policy stays current and in force.

Why Owning Multiple Policies Makes Financial Sense

While many people are unaware that it is possible to own more than one life insurance policy at a time, the truth is that often, this can provide enhanced financial security for you and your loved ones. Here are two main reasons why you may want to opt for more than one policy:

You’ll Get More Coverage at a More Affordable Rate

Term life insurance policies usually last a short period of time, anywhere from a couple of months to 30 years. While they have their benefits, the problem comes when people outgrow their term policies and don’t get the premium payments returned to them at the policy’s end.

While you may buy a term life policy when you’re young and the premiums are cheap, sometimes all you receive is peace of mind that your loved ones are protected.

How to Avoid This

To prevent losing benefits in case of premature death, you might want to buy a whole life policy while your term policy is still in effect. This is a good option because:

  • you’ll be able to get more life insurance coverage at a more affordable price.
  • you’ll avoid the fees and expenses that comes from cancelling one policy to replace it with another.

You’re Experiencing a Major Life Change

Another reason why owning multiple life insurance policies makes perfect sense is due to certain life changes.

Consider this: What if you have term life insurance but decide to have some more children? Of course, you’d want to add these new children as beneficiaries, but this would mean that your current beneficiaries would get short-changed on the death benefit.

How to prevent this: By purchasing a new, additional term life insurance on top of your current one, you can take advantage of cheap rates without doing any expensive restructuring to your policy.

Is Buying Multiple Policies The Right Option For You?

Owning multiple life insurance policies makes perfect financial sense for most people because they can work together in harmonious unison to meet all your financial needs.

How do you know if it’s right for you? Talking to a qualified life insurance agent is the best way to know what type of life insurance is right for you and whether or not you’re a good candidate for multiple policies.

Get started by calling one of our agents today at 1-866-821-1439 or fill in our online contact form.
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