Life insurance is one of the ways you can ensure that your financial future is covered, but is it possible to take out more than one life insurance policy and is it necessary? Here is what you need to know.
Life insurance that covers all your basis
Most people take out life insurance when major life changes happen such as having a child, getting married or when they are reaching the peak of their career. However, it is important to have cover as young as possible to get approved with less hassle since you are at your healthiest.
Craig Baker, CEO of MiWayLife comments, “When checking to see if your life insurance is enough it is important to evaluate your current financial responsibilities. Now imagine what will happen to these responsibilities once you have passed on? Will your loved ones be able to meet the financial responsibilities you had to meet?”
You can have more than one, but is it necessary?
It is possible to sign-up for more than one life insurance from different insurers, but you will need to carefully evaluate the effects this will have on you in the long run. Some factors you need to take into consideration are:
Premiums. Each insurer will have a different premium that they will quote you. You will also have to factor in the annual increase that comes with each premium which could end up being a large bill to foot.
Payout time may take longer. It could take your family and beneficiaries longer to claim from multiple insurers due to the extensive processing and requirements.
Unclaimed benefits. When taking out life insurance, it is also important to inform your beneficiaries or someone you trust about the multiple life insurance you have and the benefits that come with it or these could remain unclaimed should you pass on before you announce this.
Different processes. Having multiple policies also means that you will have to deal with a different process for each, which can be frustrating for your loved ones who will have to place a claim.
Time implications that you need to factor in
Getting an obligation free quote from a life insurer can be done in a couple of seconds. Knowing how much you will need to ensure that you and your loved ones are adequately can be done with our life insurance calculator. However, you will need to factor in the time implications that come with having multiple policies. The waiting period between each claim needs to be considered. It could also result in you spending more time trying to find a suitable plan that covers all your need which can be frustrating at most.
MiWayLife has solved the dilemma of feeling the need to ‘over insure’ yourself with multiple policies by offering a combined policy which includes both funeral and life insurance. By consolidating all the life-related policies that you need into one affordable policy, MiWayLife cuts out the admin and financial strain that can come with holding multiple policies.
