- Insurance Guide
- Life Insurance
- Can I Have Multiple Life Policies
Should you have more than one life insurance policy?

Having more than one life insurance policy
As a matter of fact, having more than one life insurance policy is common and free from legal limitations. Some people with financial responsibilities often purchase a second life insurance policy, while others start applying for multiple life insurance policies as a financial strategy.
Additionally, your employer might offer life insurance at little to no cost. Keep in mind, employer-based policies may only offer limited coverage — which typically ends once you leave your job.
Reasons for two life insurance policies
If you already have a life insurance policy and take on new responsibilities — like a business loan, a mortgage or even a child — you may feel the need to expand your coverage. Depending on the insurer and policy, increasing your coverage could require a medical exam and another round of approval.
Sometimes, buying a second life insurance policy is the most affordable option. For example, let’s say you already have a whole life insurance policy to help protect your family. Then, you start a business and take out a loan with the intention of paying it off in 10 years. If something happens to you, the newly added financial responsibility could become a burden to your family. It might be worth getting a second life insurance policy to provide added protection until the loan is paid off.
Plans toward multiple life insurance policies
Your family’s financial needs may vary throughout different stages of life. To help you transition through needs and resources, you may want to consider a plan called “laddering.” In this case, you would buy several term life insurance policies to cover your needs throughout your life. Let’s look at the example below:
- A 30-year term policy worth $40,000 to help cover your mortgage
- A 20-year term policy worth $50,000 to help cover your children
- A 10-year term policy worth $10,000 to help cover your car loan
Having more than one life insurance policy with limited terms could be less expensive than buying one large, long-term policy to cover everything.
Remember, the cost of your life insurance policies depends on your age and health at the time of purchase. Getting life insurance when you’re younger and in good health may lead to lower monthly premiums.
The downside behind two life insurance policies
Because life insurance policies are typically lower in price for those who are younger and healthier, you may think that applying for multiple insurance policies at once is the way to go — but doing so could result in a rejected application.
While it is legal to hold multiple life insurance policies, insurers usually won’t cover a person beyond their real expenses and needs. Insurance companies may become suspicious if it looks like you are applying for multiple life insurance policies to get unusually large coverage.
We know juggling multiple insurance policies can be tricky, even if you apply for policies over a period of time. That’s why it may be wise to help yourself manage the process by tracking coverage and beneficiaries, avoiding policy lapses and working with an insurance broker or agent.
Alternatives to an extra life insurance policy
If you don’t want to take out an extra policy, you could still increase your coverage with a “rider.” An insurance rider is an adjustment to a life insurance policy that allows you to add coverage.
You could get riders to help protect your spouse after your passing, increase your available coverage (without a medical exam) or turn a temporary life policy into a permanent whole life insurance policy. However, riders can vary as some insurance policies do not offer them.
Be aware that riders may offer less coverage than a separate life insurance policy would. To decide what works best, you might want to consult with an insurance specialist.
TruStage™ Life Insurance is here to help you explore coverage solutions designed to fit your needs and budget — making a brighter financial future accessible to everyone. Begin your search today by getting a quote.