Multiple Life Insurance Policies

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more than one Life insurance Policy

Can you have more than one Life insurance Policy?

The  answer is YES, you can get as many life insurance policies as you want. However, there are some small limitations but they have more to do with the total amount of life insurance coverage you are allowed to have. For many people, this will usually not be an issue since the guidelines are pretty generous.

multiple life insurance policies

When Should You Carry Multiple Life Insurance Policies?

Life insurance is a wonderful tool that spares your loved ones from the pain of losing your income and support. But as with many insurance matters, the terminology can be confusing to many people.

Complicating matters, life insurance comes in two basic forms that have so many different names and different degrees of coverage. The question most people ask is whether they need term life or whole life. Once you get around the confusing terms and understand important differences, term life and whole life are easier to grasp.

The most basic definitions are the simplest:term life lasts for a specified term of your life; whole life lasts for the rest of your life. In both policies, your beneficiaries receive your death benefit when you die. The main differences lie in the duration of the two forms of life insurance and some of the built-in features available.

Carry Multiple Life Insurance Policies
Owning Multiple Term Life or Whole Life Policies

Owning Multiple Term Life or Whole Life Policies Often Makes Sense

Term life covers you for a limited time—the life of the policy. The term of a term life policy could be anywhere from one month to 30 years. That’s about all term life does—pay a death benefit when you die. You have to work out the terms of the policy.

But the overall terms will remain the same—your designated beneficiaries would end up with fewer benefits from your life insurance policy. Consequently, some term life policies allow you to switch to whole life down the road.

Business owners and multiple life insurance policies

It is fairly normal for business owners and partners to have multiple life insurance policies. Often, they will have either a key man insurance or shareholder policy that puts money back into the business in the event they were to pass away. On top of that, they may often have a personal policy that will leave money for their family.


If you are a business owner or partner, you may be able to benefit from running your life insurance through the business. This type of policy is called key man life insurance and can offset against corporation tax. It also does not require income tax or national insurance to be paid on the premiums.

A key man life policy is put into a trust so that you can choose who receives the money. The pay-out is also not subject to inheritance tax.

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