Can I Have More Than One Life Insurance Policy?

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. 

Annuities Explained

Are you close to retirement or just trying to plan in advance? Something you might want to learn more about and consider are annuities. An annuity is a contract that a person can take out that allows this person to receive payments. It’s perfect for retirement because it is a way to supplement the decrease or loss of income. Whether you’re saving for retirement, approaching retirement or living in retirement, it is never too late to look into opening one.

There are various forms of annuities and each type has unique features to help you reach and obtain your goals. One type is a tax deferred annuity and is a great option if you are saving up in advance for your retirement. It is a way in which you can boost your savings. Unlike taxable accounts, this tax deferred account allows for growth opportunities and helps compound your earnings, such as in a 401K. You can invest as much as you would like in this type of account because they do not have IRS contribution limits. 

Further, there are various types of deferred accounts. These include deferred variable annuities, deferred variable annuity with a guaranteed minimum accumulation benefit and deferred fixed annuities. Deferred variable annuities have the potential for investment growth, although are recommended for those who have more time to allow it to grow and can also accommodate for market fluctuations. Deferred variable annuity with a guaranteed minimum accumulation benefit is a great way to protect yourself from the potential fluctuations of the market while also benefiting from any of the gains in the market. This type of account has a guarantee that covers your losses if your account is less than what it began with within a ten year period. Lastly, deferred fixed annuities can be seen as suitable for conservative investors because they guarantee a rate of return based on a fixed number of years.

If you are approaching retirement, the two types of annuities you can consider are Deferred fixed annuity with a guaranteed lifetime withdrawal benefit and deferred income annuities. Deferred fixed annuity with a guaranteed lifetime withdrawal benefit guarantees a lifetime income and can increase on each anniversary of the contract creation date. Deferred income annuities are similar to Deferred fixed annuity with a guaranteed lifetime withdrawal benefit, although payments are not made for this type of account until after the deferral period and also have cost of living increases to accommodate for inflation and other economical changes.

If you have already retired please do not worry, there is a plan for you as well! Immediate fixed income annuities is an account that gives a guaranteed payment for life and is shielded from market risk. The only downside is since it is immediate and not a long term investment, you may not have access to the assets invested in these annuities. 

No matter your age, there is always a financial solution to your problems. That’s what we are here for at Singh Insurance and Financial Services, to find solutions to all of your financial and insurance needs. Contact us today for more information about annuities or to open an account with us today.