How Many Life Insurance Policies Can You Have?


You can have more than one life insurance policy to cover different needs. Planning for significant life events and long-term care are a few reasons to have more than one life insurance policy. You have various options to help you create a strategy that can meet your goals. If you want multiple policies, there are prerequisites to getting another policy and limitations on how many you can have.

Whether you are single or raising a family, buying life insurance can be a way to protect your family from the financial burdens of your passing. But even if you already have a life insurance policy, it may not cover all of your needs. Multiple life insurance policies could fill the gaps and provide the financial support your family needs. Fortunately, you can have multiple life insurance policies, and they don’t have to be with the same company.

When purchasing another insurance policy, there are multiple factors to consider. Keep reading to discover whether you need another life insurance policy and how to go about getting one (or more).

Why have multiple life insurance policies?

The primary reason people get life insurance is to create a safety net for those who financially rely on them. Your insurance needs may progressively change. Below are a few reasons why you might consider adding another life insurance policy.

Cover major life events

If you have a child, get a business loan, or buy a house with a new mortgage, you will have new financial obligations. Getting more than one life insurance policy could be better than replacing your current one. It may also be cheaper than increasing your policy’s coverage limit. One possible financial strategy would be adding accidental death riders to your existing policy. This can protect your beneficiaries in case of a serious accident.

If you’re a new parent, read our new parent’s guide to finding a life insurance policy to protect your family. Then compare quotes to find the one that fits your family’s needs.

Supplement a group life insurance policy

Individual insurance can provide additional coverage to supplement your employer’s life insurance policy. Remember, if you leave a job, you’ll no longer have group coverage through your employer.

Achieve various financial goals

Different types of insurance can help you achieve specific financial goals. A temporary term policy could replace your primary income. Whole life insurance’s cash value can assist with retirement planning. Even if you’re rich and think you don’t need it, life insurance can help with estate planning and provide extra financial protection for your heirs if they are strapped for cash.

Start an insurance ladder

Instead of buying a term life insurance policy with a big enough death benefit to cover anticipated expenses, you can build an insurance ladder. A ladder strategy uses multiple policies with different amounts to give you more coverage. Matt Schmidt, insurance agent and owner of Diabetes Life Solutions, recommends that “people work with insurance companies that have ladder options or a policy that can be decreased over time and that lower your premiums should you choose to reduce the death benefit.”

Mike Raines, an insurance agent and owner of Raines Insurance Group, agrees that a laddering strategy with multiple policies can benefit you if you need coverage for different periods. “For instance, if you need a total of $1 million of protection but have different ages of kids that you want to be sure are protected until they leave the home, then laddering different amounts of coverage to coincide with their ages can help reduce the overall cost,” he says.

Plan for long-term care

Life insurance can help with covering long-term care costs. Some permanent life policies offer long-term care benefits.

What types of policies can I have?

Multiple insurers offer numerous policies that meet specific needs. Two factors to consider when purchasing a policy are:

  • What type of insurance works best for me?
  • How much life insurance do I need?

There are a lot of considerations when deciding on a policy. If you’re beginning your research, view our guide to different types of life insurance.

The main types of life insurance policies to remember are:


Permanent life insurance is a permanent plan that covers your entire life. Once you sign up for this insurance, you and your future beneficiaries will be covered as long as you pay. You can make monthly or annual payments until the end of your life or sign up for a limited-term policy which allows you to pay your policy within a shorter time frame. With a permanent life policy, your premium payments are invested and have a cash value. It earns interest that you can withdraw or borrow against in emergencies.

Permanent insurance also has a death benefit, which is the amount your beneficiaries receive when you pass away. It’s also referred to as your policy’s face value, which is the amount of life insurance coverage you bought. If you want full access, make a request to your life insurance company. Otherwise, the company will automatically move them into retained-asset accounts which can limit access to the funds.


Term life insurance is a temporary plan that covers you for a certain amount of time, such as 10 or 20 years, depending on the insurance provider. You pay a fixed monthly or annual premium based on certain factors like age and overall health. Because this insurance covers you for a short period, it’s a low-cost alternative to whole life insurance. Once it ends, you must apply for new coverage and the rates could increase. You could experience a premium increase if your health deteriorates. It doesn’t have a cash value investment component.

Our guide goes further into detail about the differences between both types of insurance.

What do I need to know before buying multiple policies?

You must disclose your existing policy

Insurance companies will ask about any policies you already have during the application process. Insurance companies will use the medical information bureau (MIB)’s database to confirm your information.

You may have to provide proof of income and assets

Insurance companies will request proof of income, like your tax records, to justify your application for an additional policy. If your coverage needs are over $5 million, you must provide financial statements from a third party, like an accountant.

You may need a medical exam

Life insurance companies will ask questions about your health and will likely require you to get a medical exam to be eligible. You could get a no-exam life insurance to get a policy without a medical exam. These policies are great for people with health issues who are considered high-risk or can’t get life insurance coverage through their employer. The tradeoff will be a higher premium if you don’t get a medical exam.

You may need to get multiple policies if you have a high income

An insurance company can restrict coverage for individual policies to $5-$10 million to prevent risk. If you have a high income and need to cover a large amount, your financial strategy could be to apply for multiple policies at different companies for coverage.

Pro Tip

When shopping around for an additional insurance policy, use an independent life insurance agent. They can help you determine how much coverage you need.

So should I have more than one policy?

While you can have more than one life insurance policy, whether you should have multiple policies depends on your lifestyle and financial situation. There are various life insurance options, and they are not one size fits all. If you already have a permanent life insurance policy, some term policies can cover you for 10, 20, or 30 years. Or you can research different whole life insurance options if you need more long-lasting coverage. If you want an additional policy to cover your needs but don’t know where to look, use SuperMoney’s comparison tools to review life insurance companies and insurance quotes in one place.


Can a person have three life insurance policies?

Yes, you can have three policies. Because there are multiple types of life insurance, a combination of policies could cover your needs. But it may also make more sense to replace your current policy with a new policy rather than adding more.

Is it better to have two life insurance policies?

Depending on your age, health, and financial needs, it may be better to have two life insurance policies. You could use a term policy to replace your primary income and a permanent policy for retirement planning, for example.

What is the maximum amount of life insurance I can get?

The maximum amount you can get depends on your age and income. It can also vary by insurer. The limits on life insurance policies are usually based on your total coverage, not per policy. If you want to buy more life insurance policies, insurers will consider how much coverage you already have. They will also consider other factors such as health issues, dangerous hobbies, or a job that puts you at risk. If you are overinsured, life insurance companies may deny your application.

Key takeaways

  • You can have more than one life insurance policy.
  • Multiple life insurance policies can help you plan for a major life event and supplement employer-covered life insurance.
  • A temporary term life insurance policy can provide primary income replacement, while permanent life insurance can help with retirement planning.
  • Laddering multiple insurance policies can provide more coverage for different periods.
  • You must disclose your existing coverage and take a medical exam before getting an additional policy.
  • The maximum amount of life insurance you can get depends on your age, income, and total coverage amount.
View Article Sources
  1. Reasons to purchase permanent life insurance – Insurance Information Institute
  2. What Are The Different Types of Life Insurance? – SuperMoney
  3. The Differences Between Whole and Term Life Insurance – SuperMoney
  4. No Exam Life Insurance: Is it Right for You? Pros and Cons – SuperMoney
  5. Life Insurance for Diabetics and High-Risk Individuals: 5-Step Guide to Finding the Best Policy – SuperMoney
  6. Do Rich People Even Need Life Insurance? – SuperMoney
  7. A New Parent’s Guide to Life Insurance – SuperMoney
  8. How To Buy The Best Life Insurance: Tips & Hacks – SuperMoney
  9. Life Insurance Retained Asset Accounts: A dubious deal for a death benefit – SuperMoney