Can I own two life insurance policies in the same time?
Do I get payment from both insurance companies depending on how many I insured or it will end up no one pays the bill?
Currently I have a life insurance and long-term disable policy from work. I heard that it is better to own life insurance and long-term disable policy outside of the work, in case suddenly loss job. My question is if there would be problems when claim the benefit.
Thank you for your advice.
March 12th, 2010 at 5:33 PM
Yes you can own several life insurance policies however only up to limits on your debt and potential earnings, roughly.
(e.g. a homeless and jobless man can’t buy a $1,000,000 policy).
Many folks do own policies outside of their work, although we as a country are way under insured for life. Combine the coverage between work and personal to arrive at the corrct amount.
As far as Disability coverage, the benefits if you need to collect are 100% taxable if provided by employer so a separtae policy makes sense.
Claims are always investigated by the Insurance Compnay and the variations are great, however the first TWO years in general are the key for investigations into fraud etc. That said, I have had clients die in the first two years and their beneficiaries have gotten the full death benefit.
March 12th, 2010 at 5:33 PM
Yes, or even three or four.
Every life insurance policy in place at the time of your death, will pay out to your beneficiary, assuming the claims are filed.
No problems with claims benefits.
March 12th, 2010 at 5:33 PM
Yes, you can have multiple life policies and they will all pay 100% of the benefit (granted they need to be paid current). What you do need to realize is that when you apply for a policy, you must disclose all other policies you have.
For instance, you currently have a $50,000 policy but are now wanting to purchase a $500,000 policy. you will need to include the $50,000 on your application along with financial status to show that you can qualify for the $500k policy.
Hope this helps
March 12th, 2010 at 5:33 PM
There atre no limits as to the number of policies an individual can own, the question underwriters look at is the current amount of life insurance face amount outstanding on your life compared to your insurable interest. For instance, if you have an income of lets say 40k per year, and you apply for 3,000,000 of life insurance, one application is enough to be declined, as it may to much insurance compared to income. Basically, as long as you remain within the threshhold, you will be ok. That’s why if you have an agent/broker to work with, he/she would advise you accordingly..
March 12th, 2010 at 5:33 PM
ou can have as many as you can afford. As long as your premiums are paid up at the time of loss, the companies must pay out reguardless of any other policy you may have. Combined Insurance is an excellent company. Try the website http://www.combined.com
March 12th, 2010 at 5:33 PM
You can have multiple life insurance policies (i have four). LTD is a different matter - that might lead to problems in determining which is primary payer.
March 12th, 2010 at 5:33 PM
You can own two or more life insurance policies.
Suggest you declare your existing ( active ) life
insurance policies when you get a new one.