Can you have more than one life insurance policy?

The short answer is, yes. It is possible to have multiple life insurance policies.

Life insurance can provide a financial benefit to your loved ones in the event of your death. Of course, that can’t replace you but it could help to relieve future financial pressures.

Read on to learn more about life insurance and the types of cover that may be of interest.

  • When you took out your first life insurance policy, it may have provided enough cover – for a mortgage, perhaps. But things can change over time.

    You may have taken a bigger mortgage to move home or make home improvements. Perhaps you’ve got a growing family you’d like to protect should the unexpected happen.

    Whatever the situation, if you can’t make changes to your original cover, you can usually purchase additional policies to meet your evolving needs.

    If you can make changes to your existing policy, it could be worth exploring that option, keeping everything in one place. You may also benefit from better terms – your insurer knows you, after all.

    There’s no limit on how many policies you can have, but it could be expensive to maintain premiums on policies you don’t really need. So, it’s worth doing some sums to work out how much cover would afford you the reassurance you’re looking for.

    Be aware that policies have no cash-in value at any time. If you get to the end of the policy and no claim has been made, it will end, and you’ll get nothing back. Also, if you don’t pay your premiums the policy will end, and you’ll get nothing back.

    Can couples have more than one life insurance?

    Yes, couples or business partners can also take out multiple joint life insurance policies. Each will pay out just once in the event of a claim, either upon the death of one or both policy holders. 

    Whether the claimant is your life or business partner, a payout could help to relieve any financial pressures they’ll face alone in future.

  • There is no legal limit to how many life insurance policies you can take out, but there’s no optimum number either. Whether it’s a single policy, or more, the priority is getting the cover you need at a cost you’re comfortable with.

    You might choose to purchase different types of life insurance, from different providers. Because the cost of life insurance can increase as you get older, you may want to shop around when purchasing additional cover.

    It’s worth asking your current insurer if you can adjust your live policy or purchase additional cover with them, in the hope of securing preferential terms.

    Whatever you select, in addition to costs, make sure you’re clear on all policy terms, limitations and exclusions before you buy.

    Get a life insurance quote

    To be eligible for Lloyds Bank Life Insurance, you must be a UK resident aged between 18 and 59.

    Scottish Widows – who are also part of Lloyds Banking Group – arrange our life insurance policies. They are our life insurance experts, helping to protect what matters most for over 200 years.

  • Many people have only one life insurance policy that covers them for a specific purpose. But there are several reasons why you might consider additional cover:

    • You might have new or larger financial commitments you’d like to protect, for example a new mortgage.
    • Changes in your lifestyle, relationships, or health, such as having a new baby or a divorce.
    • You want to avoid or reduce inheritance tax on large payouts . You may choose to take out a policy ‘in trust’ that includes who the beneficiaries are, with the payout kept separate from your ‘estate’.
    • If you’re married or in a partnership, both partners could take out their own cover, rather than having one policy for both people (known as joint life insurance).  

    Can I get more than one life insurance policy with Lloyds Bank?

    Yes, you can take out multiple life insurance policies with us, so long as the total benefit in the event of a claim does not exceed £500,000. You may also want to consider complementary types of cover, such as critical illness insurance.

    Can I get multiple life insurance policies with more than one provider?

    Yes, usually. It can depend on the provider, but most insurance companies will allow you to take out multiple policies, so long as you don’t exceed the maximum payout threshold. At Lloyds Bank, that’s up to £500,000.

  • That depends. If you have one life insurance policy that meets your needs, then you don’t need to purchase additional cover. However, if your circumstances have changed, or you’d simply like to provide for your loved ones in the event of your death, additional cover is an option.

    Things to consider:

    • You could buy two different types of policy. For example, you might select a level term policy  to provide a living for your loved ones in the event of your death. But you might also purchase a decreasing term policy to cover the term of your mortgage.
    • If you can’t amend your existing policy, but need additional cover, a further policy could be a practical option.
    • You might consider buying multiple policies from different insurers if you need cover that exceeds a single insurer’s maximum payout threshold.
    • You can set one or more policies up ‘in trust’. That means your loved ones will avoid or reduce the amount of inheritance tax due on any payouts.

    Potential drawbacks:

    • More cover equals higher premium costs.
    • If you have multiple policies, it will take more effort to keep track and manage them.
    • Based on a range of factors, including your age and health, the cost and terms of your additional policy may not be as favourable.

    It may be preferable to amend your existing policy if it’s a flexible policy. Just make sure you explore all available options before you commit to an additional life insurance policy.

    Can you claim on two life insurance policies?

    If you have multiple life insurance policies, yes. Your beneficiaries will be able to make claims against any active life insurance policies in the event of your death. Just be aware that a maximum pay-out threshold may be in place if you have multiple policies with the same insurer.

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