Multiple Life Insurance Policies: Pros and Cons

It is possible to have more than one active life insurance policy. But is it worth it? Here are the pros and cons of having multiple life insurance policies.

Advantages

  • People with higher incomes may need more than one policy to ensure their families are fully covered.
  • Accounts can be designated to go to different beneficiaries, so you can know everyone has what they need. Policies can be used to fund your child’s education, pay off mortgages and loans, or to care for a surviving spouse.
  • Entrepreneurs and other business owners benefit from having a policy to protect their business investments and a separate policy for their dependents.
  • There are different types of life insurance policies, each with its unique advantages. If you live in the Minneapolis, MN area, the insurance pros at Calhoun Risk Management can help you secure your family’s financial future with a carefully planned insurance strategy.
  • Younger people just starting out may not be able to afford all the insurance they need. Multiple policies make it possible to build walls of protection as income increases.

Disadvantages

  • Multiple insurance policies mean multiple premium payments, which can strain monthly finances. If you experience financial troubles, you may not be able to pay all of your premiums.
  • If beneficiaries for each account are not clearly spelled out, having multiple policies can cause competition amongst survivors.
  • Many policy companies have minimum and maximum coverage amounts. You may not be able to buy all the insurance you want from one company.

The right combination of life insurance policies can keep your family, business, and property safe after you’re gone. Contact the insurance pros at Calhoun Risk Management, who proudly serve the insurance needs of residents in the Minneapolis, MN area. They will help you develop an insurance strategy that fits your lifestyle, needs, and budget.