Apr 05
Can you have more than one term life insurance policy?
Absolutely! In fact, you can have a term life insurance policy and any other type of life insurance policy such as a whole life insurance or universal life insurance policy. The key to remember is you are only allowed to buy a certain amount of life insurance and that amount depends on how much money you make. For instance, the life insurance companies won’t let you take out $10 million dollars in coverage unless you make enough money to warrant that amount of protection.
Let’s say you’re divorced and you want to protect your children from your first marriage so you buy a $300,000 term life insurance policy. But you also have a child on the way from your current wife. You’ll want to protect your current family as well. In order to do so, you should apply for another $300,000 policy and name your current wife as your beneficiary. If you make $60,000 per year, this is 10x’s your income. You may even qualify for more!
To find out how much insurance you can have on your life based on your current income, contact your insurance agent. He or she should be able to help you determine how much you can get, how much it will cost you and how much you should own.
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