Can You Have Two Life Insurance Policies?

Yes, you can own two life insurance policies if you are financially qualified to have that total amount of life insurance coverage. This means, the total amount of life insurance you can own is based on your financial situation – how much you earn each year.

When you apply for a new life insurance policy, the insurance company will ask about your existing life insurance, how much total life insurance coverage you have and how many life insurance policies you own, and whether or not you plan to replace any of your existing life insurance policies.

They are not asking this to deny you from getting another policy. They are just checking to make sure that your income justifies the amount of life insurance you are purchasing, and also to prevent unscrupulous agents from taking advantage of you by having you replace valuable existing life insurance policies with new life insurance that may not be in your best interest.

Many people own multiple life insurance policies for many different reasons.

Some may buy term life insurance to protect the exposure for a short-term auto loan or home loan, while also owning permanent life insurance coverage to provide for their final expenses.

For more information, here is an article that explains How many life insurance policies can you have