Life insurance provides needed financial security and peace of mind for your loved ones in the event of your passing. One life insurance policy is enough for many, but there is no set limit on the maximum number you can purchase. Although you can buy multiple policies, most insurers will ask about your current coverage allotments to ensure that your ask is appropriate. If your income exceeds 20 to 30 times your income, the insurance company may ask for justification.
Most people purchase more than one insurance policy to ensure adequate income replacement should they pass away prematurely. Since term life insurance is only valid for a specific period of years, one strategy is to purchase multiple policies that cover 30 years. For example, you might want to have life insurance coverage for thirty years. Rather than purchase a 30-year policy or $1,000,000, you instead buy three policies of varying lengths with death benefits totaling $1,000.000. If you decide only to purchase one policy and later decide that you need additional coverage, you can always purchase another term life insurance policy in the future.
Given that there is no maximum on the number of life insurance policies you purchase, it is best to consult with your family and financial advisor to determine the best strategy. At Singh Insurance and Financial Services LLC in Clermont, FL, our friendly and professional team is ready to answer any of your life insurance questions. We can help you choose between term and whole life insurance to make the best decision for yourself and your loved ones. Give us a call today to schedule a no-obligation consultation with a member of our team.