Do you need more than one life insurance policy?
Although you can legally have more than one life insurance policy in place, the bigger question is do you actually need more than one?
Keep reading to find out more about the advantages of having more than one life insurance policy in place and why it might come in handy for both you and your loved ones.
What we do
Before we dive into the good stuff, we want to tell you a bit about us.
At Caspian Insurance, our mission is simple; a no fuss, jargon free, straight forward approach to life insurance, with some award-winning customer service on the side too.
Do you need more than one life insurance policy?
There is no one size fits all when it comes to life insurance, which is often the reason why some people take out more than one life insurance policy. Put simply, different types of life insurance policies offer different types of cover and with more than one policy in place, you can be covered for more than one event.
Here are what the most popular types of life insurance cover, in general:
- Critical illness cover would cover you for a long list of critical illnesses (the illnesses you’d be covered for can vary depending on your insurer). If you were diagnosed with one of the illnesses, your policy can pay-out a lump sum (typically a multiple of your annual income) that you can use yourself or leave to your loved ones.
- Income protection will cover you for illness and injury in general. So if you were unable to work as normal, due to illness and injury, then this policy would pay-out up to 50-70% of your monthly wage. This policy can help you pay for the essentials, if you couldn’t work as normal.
- Level life insurance is probably what springs to mind when you think of a traditional life insurance policy. This policy will cover you against death. So if you were to pass away during the term of your life insurance policy, your cover would pay out a lump sum to your loved ones which can help provide them with some financial stability.
- Mortgage protection is there so that your loved ones could pay off the remaining balance on your mortgage, if the worst were to happen to you. When you take out this policy, it will be matched up with the balance on your mortgage, with the sum assured decreasing over time.
What are the advantages of having more than one life insurance policy in place?
The main motivation behind taking out any sort of life insurance policy is for the pay-out. So having more than one policy in place, may mean that your beneficiaries (the loved ones you want to receive the pay-out) could receive more money.
With more than one life insurance policy in place, you can have different needs and different time periods covered. For example, you might have one policy that covers your mortgage whilst also having a critical illness policy running alongside it which will cover you and your children, until they reach a financially independent age.
Finally, one of the biggest advantages to having more than one type of life cover in place is that you can ensure that you have peace of mind that you’re covered for everything you need to be.
Different policies, different providers
With life insurance, it can feel like a whole new world! Not only are there different types of policies to choose from, there are also so many different insurers.
When we help you take out life insurance, we search through the UK’s leading life insurance providers, comparing policies and providers to find the best match for you and your family. With modern life insurance providers, they often don’t just offer a pay-out, they can also offer benefits that both you and your loved ones can benefit from, including but not limited to:
- Second medical opinions, so if you were ever unsure of a diagnosis, you would have a team of experts on hand to help
- Personal nurses who can offer support for a range of different circumstances such as trauma, disability, bereavement, any long-term physical or mental illness such as cancer, cardiac, depression, anxiety, and so much more
- Access to online 24/7 GP appointments
- Free mental health support is there when you’re struggling and need advice, the four therapy sessions a year can be a massive help if you’re going through a tough time
- Tailored fitness and nutrition plans designed by experts can help advise you on how to achieve your fitness goals and will detail what food you’ll need to fuel you
So if you have cover with more than one life insurance provider, you can make use of the different benefits that each provider offers.
Is there a limit to how many policies you can have?
There is no legal limit to how many life insurance policies you can have, however, when you start getting to a certain amount of cover, additional evidence may be required.
But this isn’t something that you need to worry about as it’s very rare that someone would need such a large amount of cover that additional evidence would be required.
Do you and your other half need more than one life insurance policy?
If you’re sharing your life with someone, it makes sense to share a life insurance policy with them, right? Not always!
It might seem like a good idea to share a joint life insurance policy with your partner, however, typically a joint policy will cover you both but only pay out once. The idea behind this is that the pay-out from the policy would ensure the surviving partner won’t struggle with money, if the worst were to happen to their partner.
However, with a life insurance policy each, both your partner and you can have peace of mind that if the worst happened to either of you, the surviving partner would still have their own life insurance policy in place.
Does having more than one policy change how you claim?
When you have multiple life insurance policies, it’s likely that you’re covered for different levels of cover and sometimes even with different insurers. So when it comes to making a claim, you and/or your loved ones may need to contact a few different people.
Luckily, when you take out a life insurance policy with Caspian, we have our very own dedicated claims team who will be there for you and/or your loved ones, if the time ever comes to claim.
We can help get in touch with your life insurance providers and chase anything up, and just be there to support you, if you need it.
What if your circumstances change?
Whether you’ve gotten married, started a family, bought a house, changed your job or even quit smoking, as the years go on, your circumstances may have changed from when you initially arranged your life insurance policy.
If things change, we can help review your cover. By getting to know more about any new life events or any new financial responsibilities, we can either help change the amount of life insurance you’re covered for or help you take out additional life insurance.
Key takeaways
- Whether or not you need more than one life insurance policy all depends on your current circumstances and needs (an annoying answer, we know). But a lot of the time, the answer ends up being yes!
- It’s always better to seek advice from life insurance experts so that you end up with the right level and type of cover (we have over 200 years combined experience in the industry, hint hint).
- When you take out cover with Caspian, our customer service doesn’t stop once we've sorted your cover - we’ll be here for you and your loved ones, even if a claim needs to be made on your policy.
- Having multiple policies can sometimes be more cost effective than having one policy, depending on your circumstances. But it’s always better to ask for advice so that you don’t end up having too much or too little cover.
- If you change your mind about your existing life insurance policy or think you’d benefit from more than one life insurance policy, then we can help review your cover.
