Yes. You can own more than one policy, and each one pays if you die while it is in force. Insurers do limit your total coverage based on your income.
Insurers look at the coverage you already have when you apply. For individual policies, total coverage is often capped around 20 to 30 times your yearly income.
Some people buy several term policies with different lengths. This is called laddering. Coverage drops as kids grow and debts shrink.
For example, a 10 year $500,000 policy, a 20 year $300,000 policy and a 30 year $200,000 policy add up to $1 million at first.
Laddering can cost less than one big policy if your needs drop over time.
People also add a policy to fill gaps in work coverage, pay for a funeral, or leave money to family.
- Fill gaps in work coverage
- Cover a home loan
- Pay for a funeral
- Leave money to family
- Cover a small business
More questions
Will both policies pay?
Yes. Each policy pays if you die while it is active.
Do I have to tell a new insurer about my other policy?
Expect them to ask. Insurers look at your existing coverage.
Is one big policy simpler?
It can be. If your needs may change in ways you cannot predict, one policy you adjust may work better.
