Can you have more than one life insurance policy?

How many life insurance policies can I have?

You can have more than one life insurance policy. Or a combination of different types of life and income protection products. There's no legal limit. 

For some, having more than one policy works. But whether it works for you depends on your personal circumstances.

For example, you might choose a life assurance policy that pays a guaranteed lump sum when you die. And have a decreasing term life policy alongside that to cover off any outstanding debts you might have.

Advantages of multiple cover

Two (or more) life insurance policies might be better than one because:

• Multiple policies give you sufficient cover to meet all your needs
• If you’ve made positive changes to your health or lifestyle, an additional policy to cover other financial needs might be cheaper.

Disadvantages of multiple cover

Just because you can take out more than one life insurance policy, doesn’t mean you should. Having multiple policies can have drawbacks, including:

• The cost of your premiums may increase
• Managing multiple plans requires greater understanding of policies and more admin

Changing your cover

If you already have life insurance, you should review your current arrangements regularly to check it’s still right for you and your family.

It may be better to amend your policy than buy a new one. If you think your current cover isn't quite right, speak to your insurer. Find out if you can increase your level of cover after key life events (like having a baby or moving home) - the extra cost may be less than taking out a new or additional policy.

Shop around for an additional policy

A policy you arranged in your younger days will probably be more cost-effective than one you arrange when you get older, so think carefully before cancelling an existing policy.

However, every situation will differ. If, for example, you've given up smoking, stopped drinking, lost weight and/or have had a long remission from a serious illness, cancelling an old policy and arranging a new one could be the right option for you.

When you're trying to work out if your needs have changed, sometimes the best thing to do is get impartial advice from an expert.