Is it legal to have more than one life insurance policy?
- Anonymous1 decade agoFavorite Answer
Yes but why would you have more than one policy on yourself? Why don't you just increase the coverage in your policy? Did you know there is a policy fee of around $100? Imagine that you had 5 policies on yourself. You would be paying $500/year on policy fees.
To me, this is another way life insurance agents are not doing the right thing for the client. They keep selling new policies on the same client to earn more commissions. I think it should be illegal for agents selling multiple policies on a single client.
I had a client who had 10 policies on himself with a total coverage of around $700,000. Total premiums he was paying for all them: $8200/year. They were not all from the same company. He had policies from all kinds of life insurance companies. What I did is replace all those policies with one life insurance policy with a total coverage of $1 million and it only cost him $2000/year. Then I move the cash value from his policies into a variable annuity using a 1035 exchange. I didn't move them all into a variable annuity. For couple of policies, I had him surrender them and move the cash value into a Traditional IRA (his income was too high, so he didn't qualify for a Roth IRA). And the rest of the cash value, I left it up to him. He can put it into a variable annuity or spend it or save it somewhere for later use.Source(s): http://obe231.blogspot.com
- barusLv 43 years ago
The insured has to signal the application and depending the size of the coverage and the age of the insured would ought to take a medical. What an different human being would properly be is the "proprietor" of the coverage. For that he has to have what's generic as an insurable pastime interior the guy. to illustrate,, the insured is being helped financially through the owner or the different reason to justify that you'll obtain an quantity of money as repayment on your expenditures in this human being
- JenLv 51 decade ago
yes you can have more the one. many people have life insurance from work, and a individual policy of there own.
- 1 decade ago
Yes you can have as many as you want as long as you pay. I have two one term and one universal. Shop around and figure out what you need and what would be the best for you.
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- nj2pa2ncLv 71 decade ago
yes you can. I do but I have different beneficiaries on each policy
- blbLv 51 decade ago
Yes, you can have as many as you want.
It is cheaper to have one but you have more than one.
- 1 decade ago
yes it is.. but you have to make aware other companies of ur life insurane. best thing to do is get a varity of insurances. life health sickness or wat most ppl forget is unemployment insurance.