Can You Have Multiple Life Insurance Policies?

Life insurance plan

Being a homeowner is a tremendous responsibility. A home does not take care of itself. If you are not inclined to physically take care of a house, then you will have to call in repair technicians from time to time. That gets expensive. However, one of the most important protective measures that you must undertake as a homeowner is to acquire enough homeowner insurance policies to protect your home. Yes, “policies,” as in plural.

Most homeowner insurance policies do not cover every potential threat to a home. So, a homeowner has to buy several policies to cover their bases. Or hope the policy that they go without never manifests itself as a threat to their home. So, homeowners usually have to buy separate fire, wind damage, earthquake damage, hail damage, and other such separate natural disaster home insurance policies.

Of the estimated 126 million homeowners in the United States, only about 5 million have flood insurance. Flood damage from the several once-in-a-lifetime superstorms and hurricanes that have hit the United States in recent years have caused tens of billions of dollars in damage. Homeowners without flood insurance were stuck paying out of pocket for damages, or became homeless. Life isn’t easy or fair. Having as much insurance coverage as possible defends against the unfair randomness of life. Like life insurance.

Multiple Life Insurance Policies

If you can afford it it is always beneficial to have as many life insurance policies as possible according to your life circumstances. You should view life insurance as a protection against the uncertainties and randomness of life. Like death, debilitating injuries, and the suffering that may befall your loved ones in the aftermath. If you can afford it, you can have as many life insurance policies as you want. There are indeed different types of life insurance policies.

Coverage against the Uncertainties of Life

Yes. You can own as many life insurance policies as you can pay for. Why would you do such a thing? In a word, coverage. Multiple life insurance policies can be used as protective coverage against all potential financial threats and risks that can occur in life. You can use life insurance to protect your loved ones from paying for your medical bills from a debilitating illness, or, all of your final expenses for a funeral.

A life insurance policy can be used for numerous benefits. After your death, death benefits can be paid out to beneficiaries from the accrued value of the policy. Life insurance can also offer you numerous benefits while you are alive. The cash value of a life insurance policy can be leveraged against for a loan. A life insurance policy can be converted into supplemental, self-paying monthly income.

It can be converted into a tuition payment for a beneficiary. The cash value can be invested and pegged to activities of the stock market. The more life insurance policies that you own, the more you can tailor how those policies benefit you and your beneficiaries.

Various Life Insurance Policies

Employer provided life insurance is the easiest form of life insurance that you can attain. All you have to do is get a job that offers it. Most employers pay up to 80% or more of the premium and your end is automatically deducted from your pay. Various permanent life insurance, like whole life insurance, offers coverage for a lifetime.

Term life insurance is valid only for predetermined periods of coverage, like 5 or 10 years. The cash value, or excess depending on the policy, from a universal life insurance policy can be invested by you or the insurance issuer in companies and stocks. Burial insurance can be used as a sole protection against the financial burdens of paying for a funeral.

All-Encompassing Coverage Is the Key

Imagine having only one form of life insurance to cover all of the unknowns in life. Over 40% of Americans don’t have any life insurance. Over 40% of couples wish their spouses had life insurance or more of it. Many people go through life with the barest minimum of life insurance coverage, or, are woefully under insured.

If you can afford multiple premium payments, you should definitely invest in attaining as many life insurance policies as you need. To protect yourself and your beneficiaries from the uncertainties of life.