In the case of the subject of life insurance, recognize the need to be protected. You could get various options for life insurance, But is one policy sufficient? If one thinks they require more insurance, is it possible to purchase several insurance plans? Yes, it is possible. However, you must know how it operates.
Life Insurance Policies with a Laddering Feature
One option is to create several term policies that run out at different times. For instance, it is possible to have one for 10 years, one for 20 years, and one for 25. It will meet the needs of your beneficiaries as they get older. In the next 25 years, only one policy will be in place. Still, the idea is that the beneficiaries’ financial requirements will not be as significant as they were during the first decade.
A New Complete Policy
You might have an insurance policy when you were young that has a fair rate. However, it might not provide enough to cover you. Instead of giving it up or resigning, you could consider another policy reflecting the greater need for insurance. It could have an entirely different name or beneficiary and remember a different financial situation.
Reasons to Have the Existence of Multiple Life Insurance Policies
Life is unpredictable, and so are our financial obligations. For instance, an individual could be divorced and then remarried. They might still wish to secure life insurance to cover their ex-spouse and children as beneficiaries if they die. If they pass away in a hurry, the child support payment and spousal support will not protect. In the event of a future relationship, they might decide to create an insurance policy for themselves to ensure that the new person is also covered.
In a different scenario, you might have children you would like to gift something that wasn’t there years back when you first took off an insurance contract.
Another reason to get a term life insurance plan is that it will increase the protection provided by your job benefits. The group life insurance policy gets generally restricted to the lower limit. Therefore you might want to boost your financial security. What happens if you lose your job? Your life insurance policy could come in as an emergency.
Alternatives to Purchasing Several Life Insurance Plans
If purchasing a new life insurance policy isn’t your style, you can decide to safeguard your beneficiaries in different ways.
Another option is to include an additional rider in your complete plan. It is essential in the event of accidental death. It’s an option that will meet your specific insurance requirements. In most cases, the insurance rider will increase premiums; however, specific policies will include it for free.
You usually don’t require another medical examination. It is also possible to increase the current policy’s coverage to accommodate the growing demands. It is called increased guaranteed insurance.
Another alternative is to convert your term insurance into an entire life insurance policy. The premiums will be higher, but it will guarantee you’ll have protection for the rest of your life.
Is It Good to Have Multiple Life Insurance Policies?
There are advantages and disadvantages to having several Life insurance policies. You get excellent coverage and can rest easy knowing that your beneficiaries are protected. The cons are the more expensive premiums and, in some instances, there is a considerable cost. Looking at your financial situation to ensure that you have multiple insurance policies is essential. You require, and you can manage.
The Bottom Line
If your financial obligations have changed and your existing policy doesn’t meet all of your needs, consult an experienced insurance professional regarding the options available. There is no need to remain with the same company. You can purchase a policy with an insurance company that offers life insurance, and the number of payouts won’t change as long as the contract conditions get fulfilled.
Ottawa Life Insurance regularly works with the best insurance companies. Through this alliance, we can offer you the most excellent insurance at the lowest possible cost while assuring you of a dependable insurance provider. Call us at (613) 454-1424 or email us at info@ottawa-lifeinsurance.ca for further information.
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