It is possible to have multiple life insurance policies to ensure you have the coverage you need in the event of a tragedy. It is also possible to switch policies or make changes to your current policy as your circumstances evolve. For example, you may want more coverage during the portion of your life when you are raising children and paying for a home. Once you have retired and have fewer dependents, you may wish to make changes. So, exactly how many life insurance policies can you have?
There is no set rule for the number of life insurance policies you can have. You might have a policy through your employer, a policy on your own, and/or a policy with your spouse. Some people use a process referred to as laddering, and stagger coverage with multiple term life insurance policies of different lengths. However, typically it is simpler to make changes to your existing policy as needed.
Term Life Insurance vs. Whole Life Insurance
Term life insurance and permanent life insurance (also called whole life insurance) provide different benefits, so it’s important to understand which one will best fit your current needs.
Term Life Insurance
Term life insurance provides a set amount of coverage for a predetermined amount of time, such as 15 or 20 years. If you pass away during this time, your beneficiaries receive a payout. This type of life insurance policy costs much less than whole life insurance coverage, plus the premiums typically will not change, and the payout amount is guaranteed. This is a great option for the phase of life when your income is lower, and your financial responsibilities are higher.
Whole Life Insurance
Whole life insurance will also provide a guaranteed payout amount and fixed monthly payments, but the policy will cover you for the duration of your life, however long that may be. The monthly premiums are higher than term life insurance because your coverage lasts much longer, and you can take advantage of other benefits. For example, a whole life insurance policy will accumulate a cash value over time, and you may be able to earn annual dividends on top of that.
Is Term Life or Whole Life Insurance Better?
Which type of insurance policy you choose will depend on your individual needs and income. There is no one policy that is best for everyone. If whole life insurance is difficult or impossible for you to fit into your budget at this point in your life, you will want to go with a term life policy to save on monthly premiums. If you have plenty of disposable income and want additional investment benefits, then whole life insurance may be better for you.
Keep in mind that many policies are convertible. This means that you may be able to sign up for term life insurance for a set number of years and then convert your policy to a whole life insurance plan. Depending on your insurance provider, this can also prevent the need for new medical exams and other application requirements that come with getting an entirely new plan.
The most important thing to remember is that any amount of life insurance coverage is better than none. Make sure your family will have financial security in the event of an unexpected tragedy by setting up a policy today.
Pacific Wealth Solutions
There is no single solution for all families. Contact Pacific Wealth Solutions to get a customized solution for your wealth planning, along with our no-medical-exam-required application process.
Term Life Application Steps
Step 1: Apply Now
We will take you to the Coverpath term life page.
Fill out the “Get a Quote” questionnaire and click, “Apply Now.”
Step 2: Create an account.
Manage your policies and investment accounts.
Get help from MassMutual directly, or you can always contact PWS via live chat or email on our website.
Set preferences and notifications. Get helpful financial resources.
Step 3: Submit the application.
Sign in to your account and finish your application.
Submit the application and wait for approval.
Permanent Life Application Steps
Step 1: Apply Now
Navigate to the Permanent Life Insurance page.
Click “Apply Now” and fill out the questionnaire.
After the questionnaire is filled out, we will send you a customized link to continue the process. That’s it!
Start planning for your future and apply for permanent life insurance today!