Can I have more than one life insurance policy?
Answers | 11
In fact, I have two life insurance policies. One term policy and one permanent policy.
Term life insurance is designed to provide financial stability during a specific time period or term. For example, if you buy a house with a 30 year mortgage, 30 year term life insurance is an appropriate product. When the mortgage is paid off, then the financial protection your term life insurance provides is not necessarily needed any longer.
Permanent life insurance, is just that. Maintaining a much smaller permanent plan will insure that no one is burdened, financially, with your final needs.
There are multiple options and plan designs within both term and permanent products, please consult a licensed agent before making a purchase on the web.
If you have more than one term policy, it is a good idea to consolidate term into one policy. There is a "volume discount" or banding at $250k, $500k, $1 mill plus there is a policy fee in each contract.