How many life insurance policies can I have?

Yes, it’s possible to have more than one life insurance policy.

Unlike other insurances, such as car and home, there’s no legal limit on how many life insurance policies a person can hold.

However, insurers often won’t approve you to take out more cover than is deemed necessary.

When taking out multiple life insurance policies it’s essential to compare quotes to secure a great deal.

At Reassured we can help you save time and money by comparing quotes from top UK insurers.

Why not use our fee free and award-winning service to find our best deals?

Keep reading as we cover:

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Why would I want multiple life insurance policies?

With so many financial responsibilities in today’s world, having more than one life insurance policy could allow you to cover multiple financial commitments.

Only 30% of those aged 30 - 34 have enough life insurance, rising slightly to 35% for those aged 35 - 39.

It’s suggested that this is due to people only choosing to only cover their mortgage, forgetting other big expenses that could be left to loved ones[1], such as:

  • Household bills & utilities
  • Day to day living costs
  • Additional childcare costs
  • Funeral costs
  • Inheritance tax bills
  • An inheritance

If you already have a policy in place to protect your mortgage, then you could also secure an additional policy to help protect other essential costs (like the ones listed above).

Alternatively, you may consider securing multiple policies if:

  • Your family has grown - The average cost of raising one child to the age of 18 is estimated to be £166,000[2], therefore a policy that was intended to cover one child may not provide enough cover for your growing family
  • You’ve moved to a bigger house - If your mortgage costs increase, you’ll likely want to ensure that your cover mirrors your new mortgage balance
  • You have a large estate - Having multiple policies in place could allow you to provide an additional sum to cover any inheritance tax bills that are left to your loved ones. You’ll need to write this policy in trust so that it doesn’t form part of your estate
  • You want to secure a joint policy with your partner - Perhaps you already have your own cover in place but now you wish to take out a joint policy with your partner to protect a shared asset
  • You’re reaching your senior years - If you’re coming to the end of a term policy and your needs have changed due to your age, layering a form of life assurance (such as over 50s plan) could allow you to provide a guaranteed pay out to help cover funeral costs and/or an inheritance
  • You receive limited death in service through your employer - While death in service is a great benefit to receive, if you have dependents or large debts (such as a mortgage) the amount your loved ones receive (typically a multiple of your salary) may not be enough to cover everything
  • You want to maximise your life insurance pay out - Having multiple life insurance policies to protect different financial commitments and costs could potentially allow your loved ones to receive a larger sum than one single policy could allow

Speaking to an experienced life insurance broker can help you to gather all the information you need about the options available to you.

Get in touch with a friendly member of our team so you can make a fully informed decision.

It’s not always necessary to secure a new policy

Some life insurance policies include a ‘guaranteed insurability’ or ‘special events’ option which allows you to increase your cover amount to keep up with certain life changes (such as growing your family or moving to a bigger home).

Typically, with this option, you don’t have to provide any new medical information so (depending on your health and other personal factors) this could be a more affordable way to secure the additional cover you need.

It could be worth checking the terms and conditions of your current policy to see if it includes this option.

Do you need more than one life insurance policy?

Enter your financial commitments and key costs to establish what you need to cover and how much life insurance you need.

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£137,934 is the estimated mortgage debt per household in the UK.

The purchase of a home is likely to be the largest financial commitment any of us will make in our lifetime. Your life insurance should cover your remaining mortgage balance to allow your loved ones to stay in the family home should anything happen to you.

Source: Moneynerd.co.uk
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The average monthly household budget in the UK is £2,548 (that’s £30,576 per year), which is spent on transport, food & drink, utilities (gas, electricity, water etc), clothing, council tax and leisure activities.

With energy prices hitting a record high and the cost of living rising sharply in the UK, you may wish to factor in utility bills and family living expenses into your cover.

Source: Nimblefins.co.uk
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The average personal debt of UK adults has risen to £34,566 (not including mortgage debt), with credit cards, personal loans and overdrafts being the most common forms of debt.

Factoring in any debts into your life insurance cover means that, if they need to be paid back from your estate after your passing, your loved ones won’t miss out financially.

Source: Money.co.uk
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According to SunLife, the average cost of a funeral in the UK is £3,953 (with the overall cost of dying at £9,200).

Funeral costs have increased by 116% since 2004 and are a significant cost which should be factored into the amount of life insurance you secure.

Source: SunLife.co.uk
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When factoring in cover for your children, you may wish to calculate the amount based on how long it is until they reach financial independence.

This could include childcare (£7,000 per year for part-time care), school expenses (£1,519 per school year for uniforms, lunches, stationary etc), as well as an additional sum for further education (this could be a contribution of up to £5,000 per year).

Sources: Daynurseries.co.uk, Primarytimes.co.uk & Savethestudent.org
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2 in 5 adults say they are relying on an inheritance to fund their retirement.

Factoring in an inheritance to your sum assured could allow loved ones to live a more financially comfortable life. Alternatively, you could leave a cash gift to a charity of your choosing.

Source: Moneyage.co.uk
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If you’re lucky enough to have your own savings or are part of the 30% of UK residents who already have a life insurance policy in place, this can provide financial protection for loved ones.

By entering your current cover, savings or death in service amount you can reduce the sum assured you require.

Source: Scottishbusinessnews.net
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How could I combine more than one life insurance policy?

The are multiple types of life insurance, each better suited to covering different aspects of your life.

Therefore, if you’re wanting to protect multiple costs, you could take out more than one life insurance policy to protect each cost.

Below is a breakdown of each policy and what they’re commonly used for:

Policy typeDescriptionCommonly used forAvailable through Reassured
Level term life insuranceCover for a specified period that offers a fixed pay out sumCould help to cover a mortgage and/or family living costs Icon green tick
Decreasing term life insurance Cover for a specified period that offers a pay out sum that reduces over timeCould help to cover a repayment mortgage Icon green tick
Whole of life insurance Lifelong cover with a guaranteed fixed pay outCould help to cover an inheritance, funeral costs and inheritance tax bills Icon green tick
(through our advised service)
Over 50s plan Lifelong cover with guaranteed acceptance for UK residents aged 50 - 85Could help to cover funeral costs or a small inheritance Icon green tick

For example, if you wanted to protect your mortgage as well as family living costs, you could secure a decreasing term life insurance policy (to reduce in line with your mortgage balance) and a level term policy (to provide a fixed lump sum pay out).

There are also additional policies that you could layer with a life insurance policy, these include:

Policy typeDescriptionCommonly used forAvailable through Reassured
Family income benefitCover for a specified period that pays out in monthly payments rather than a lump sumCould help to cover long term family budgeting Icon green tick
(through our advised service)
Critical illness coverCan be added to a term life insurance policy for an additional cost to pay out for serious illnessCould help to cover loss of income and/or private medical bills Icon green tick
Income protectionA policy which can pay out a percentage of your income while you’re unable to work due to illness or injuryCould help to cover essential living costs while you’re off work Icon green tick
(through our advised service)
Funeral planCover specifically designed to help you pay for and plan your funeral service in advanceCan only be used to arrange your funeral service Icon ruby cross

For example, you could secure a life insurance policy to protect your loved ones after your passing alongside an income protection policy to protect your earnings during your working life.

A friendly member of our team can talk through your needs and provide you with all the information you need about any additional policies you’re considering.

Simply get in touch for your fee-free quotes.

Should a couple have more than one life insurance policy?

If you’re part of a couple, you could take out joint life insurance or two single life insurance policies.

Having two single life insurance policies as a couple could allow you to provide a greater level of cover as you would be providing two separate pay outs.

A joint policy would only provide one pay out, typically on a first death basis, as both people would be covered under one policy.

Whether you should have more than one policy in a couple will ultimately depend on your personal circumstances and needs.

For example, if you’re on a tight budget, a joint life insurance policy could be a cheaper way to secure cover.

However, if you have dependents and you’d like to provide comprehensive cover, two policies and pay outs could be more suitable.

At Reassured we can help you conduct a full joint vs two single policies comparison free of charge.

Pros and cons of having more than one life insurance policy

The pros of having multiple life insurance policies include:

  • Maximise the potential pay out to your loved ones - Having multiple policies could allow you to provide a greater sum assured than one single policy could offer
  • Cover different financial commitments and costs - Having more than one policy means each pay out could be used for different costs
  • Keep up with ever changing needs - If you have cover in place but your needs have changed, layering additional policies can allow you to provide a comprehensive solution for your new circumstances

However, as with most decisions, it’s also wise to weigh up any potential cons. The cons of having more than one life insurance policies include:

  • You’ll need to pay multiple premiums - You’ll be required to pay life insurance premiums for each policy you take out in order to keep cover valid
  • The price you pay for a new policy could differ - Depending on your age, health and other factors, the price you pay for any additional policies could be more expensive

Remember, if you simply need to increase your cover amount to account for new circumstances, it could be possible for you to do this with your existing policy.

If your policy includes a special events clause, you can increase your cover amount without the need to provide new medical information.

Why not speak to one of our friendly experts who can provide all the information you need to know about your options?

Compare multiple life insurance quotes

If it’s within your budget, and meets your needs, it’s completely possible to take out more than one life insurance policy.

No one knows what life will bring and, for many of us, our needs will change over time.

The policy you took out 10 years ago may no longer be sufficient for your current needs, so it’s important to evaluate your cover regularly.

Layering an additional life insurance policy can allow you to provide a comprehensive solution for your loved ones.

Why not compare quotes using our award-winning life insurance broker service?

We can compare quotes from some of the UK’s best life insurance companies and carry out a price comparison to save you save time and money.

Quotes start from just 20p-a-day † and are completely fee-free.

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Can you have more than one life insurance policy UK? [FAQs]

Is it legal to have multiple life insurance policies?

Yes, it’s legal to have more than one life insurance policy. There’s no legal limit on the number of life insurance policies a person can have.

Can I add to my life insurance policy?

If your circumstances change during your policy term, it could be possible to add to your policy by increasing your sum assured.

This is often known as a ‘guaranteed insurability’ or ‘special events clause’ and it allows you to make changes to your policy in the event of certain life events.

While it’s possible to make changes to your policy (such as increasing your cover amount), once your policy is in place you typically won’t be able to add extras like critical illness cover.

Can I have more than one over 50s plan?

Yes, you can have more than one over 50s plan.

As over 50s plans don’t require you to provide medical information, insurers often mitigate the risk by offering a lower cover amount (for example, up to £20,000).

Securing more than one over 50s plan (with multiple insurers) could allow you to provide a greater level of cover for your loved ones.

Can I have two life insurance policies with the same company?

Yes, as long as your policies don’t exceed the maximum cover amount specified by the insurer, it’s possible to have more than one life insurance policy with the same insurer.

Can I have multiple life insurance policies with different providers?

Yes, it’s possible to have multiple life insurance policies from different insurers.

Having more than one policy with different insurers can allow you to take advantage of the different benefits offered by each insurer.

Can I claim on more than one life insurance policy?

Yes, it’s possible for claims to be made on multiple policies. This would allow the beneficiaries to benefit from multiple pay outs.

Can I have more than one life insurance beneficiary on my life insurance policy?

Yes, you can have multiple beneficiaries on a life insurance policy.

Can more than one policy be written in trust?

Yes, it’s possible to write multiple life insurance policies in trust (if a trust service is offered by the insurer).

The benefits of writing a life insurance policy in trust include:

  • Avoid/minimise 40% inheritance tax
  • Avoid/minimise a lengthy probate process
  • Have greater control over who receives what and when

At Reassured we offer a FREE trust writing service with the majority of the policies we sell.

Our friendly team can guide you through the process and answer any questions you might have.

Sources:

[1] https://www.which.co.uk/news/article/two-thirds-of-adults-in-their-30s-dont-have-enough-life-insurance-aveY96v8Fkof

[2] https://cpag.org.uk/policy-and-research/findings-our-projects/cost-child-reports

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