Can you have more than one life insurance policy?

There are no legal limits on how many life insurance policies you can have at once. But insurance providers may have maximum benefit amounts. This means they cap how much life insurance you can take out in total. This will apply across multiple policies and when you take out a new policy you may be asked if you already have one with another insurer.

That all depends on your circumstances, why you need the extra cover, and the flexibility of any existing life insurance policy you have. If you’re not sure what’s best for you, you might want to chat to a financial adviser. An adviser may charge for their services and you can find one at unbiased.co.uk.

If you need to boost your cover and you already have a life insurance policy, your current insurer may be able to help. You might be able to do this by tweaking your existing policy so it stretches to cover your additional needs, or by setting up a new policy to run alongside it.

If you already have a life insurance policy with us, you may be able to make a number of changes to get cover that might fit your new needs. This includes increasing your cover amount or changing how long your policy lasts. Depending on what changes you want to make, we’ll either amend or replace your existing policy, or we’ll give you a new policy to act as a ‘top-up’ to your current one. These changes may affect the premium you pay, and you might have to give us some medical information.

If you want to take out extra life insurance cover, you don’t have to stick with your current insurer. You can have multiple life insurance policies with multiple different providers.

Maybe your existing insurer can’t make the changes you need to your existing policy. Or, after researching other quotes, you might discover you can grab a better deal elsewhere.

Remember, each policy you take out is separate from any other life insurance you have. So you’ll have to pay separate monthly premiums for each one, even if they’re with the same insurer.

Can I have multiple life insurance policies with the same provider?

Yes, if you'd like to keep everything with one provider, you can hold multiple life insurance policies with the same insurer. This can offer convenience and consistency, especially when managing your cover or making changes in the future.

Whether you already have a policy or are relying on employer-provided benefits, there may come a time when your current life insurance doesn’t offer enough protection. Depending on your needs, budget, and circumstances, adding extra cover could be worth considering.

Here are a few reasons you might want more than one:

1. If your circumstances change – If your financial responsibilities grow, maybe because you’ve got a new addition to the family or you upgrade to a bigger house, any existing life insurance policy you’ve got might not stretch far enough anymore. Or you might want cover for a specific change in your life. For example, if you get a new mortgage, you might want a life insurance policy just for that. Having multiple policies could help bump up your level of cover to fit your new circumstances. 
2. You have limited cover through your employer – Some employers offer group life insurance as an employee perk, often known as 'death in service' benefit. Any pay-out is usually worked out as a multiple of your salary and the cover only lasts while you’re employed with that particular company. If you do have death in service cover, it’s up to you to decide if the amount it would pay out is enough to help your loved ones, or if you need your own separate life insurance as well. Read more about the difference between death in service policy and life insurance.
3. You and your partner take out life insurance together – You and your partner might decide to take out a joint life insurance policy to protect what you share, even if you already have your own individual life insurance policies too. Or, if one or both of you don’t have life insurance already, you might wonder if you should get one joint policy, two single policies, or a combination of joint and single policies. Find out more about deciding between a single or joint life insurance policy.

Although taking out an additional life insurance policy might feel like a good idea, here are three things you should consider before you do:

1. You’ll be paying additional premiums for your policy.
2. Check whether you can make changes to your additional policy before you get a new one as you could save some money.

If you have multiple policies with multiple providers, then whoever is looking after your estate will need to make multiple claims if you die within the policy term.