Pricey Dave: A relative of mine lately outlined she experienced two existence coverage insurance policies. Is it Ok for a particular person to have additional than a single lifetime insurance coverage coverage? If so, why would an individual do that?
Pricey Victoria: There are not any principles against acquiring far more than one lifetime insurance policy coverage. The only true difficulty is it may complicate your lifetime a very little in phrases of having several top quality withdrawals, checks or potentially added policy service fees to worry about every month. It is cheaper just to have just a single coverage, usually speaking, but irrespective of no matter whether you have a single or a lot more, I normally advocate getting 10 to 12 instances your annual profits wrapped up in a very good, amount expression existence insurance coverage coverage.
Different people today have various private and small business monetary scenarios, so there could be a lot of reasons to have much more than a person life insurance plan. I have tons of insurance policies related to our estate prepare, our organization and different types of matters. Most everyday living insurance coverage corporations will only write so a lot in protection for one particular person, so when this has been the case, I just went to an additional carrier for extra protection.
Also, some folks get more than a person life insurance plan plan just to really feel protected from a provider standpoint. If 1 insurance policy organization goes out of organization, they’ll nevertheless have yet another plan — or extra — in location. That is not ordinarily a significant problem, nevertheless, due to the fact the majority of insurance policies firms have insurance to back them up with the state or are fiscally stable.
I hope this aids, Victoria.
Dave Ramsey is a seven-time No. 1 nationwide bestselling writer, individual finance pro and host of “The Ramsey Show.”