How many life insurance policies can you have?

Last updated 12^th January 2024
4 min read

In the UK, there's no legal limit to how many life insurance policies you can have. Sometimes, it may be beneficial to hold multiple insurance policies. It all depends on your circumstances and finding a policy which meets your needs.

In this guide, we take you through what you need to know about taking out multiple insurance policies. We discuss whether you should take out more than one policy. We also look at whether you can hold multiple insurance policies with more than one provider.

When might you consider multiple life insurance policies?

There are important things to consider before taking out multiple life insurance policies. There are also situations where having additional cover may come into question.

We’ve outlined some common examples below:

Change in circumstances

Since taking out your life insurance policy, you may have moved house or had another child. If that’s the case, you may want to increase your life insurance policy.

In this case, another policy could help to protect your new financial responsibilities. (Alongside the cover and premium from your initial policy.)

Alternative to a joint policy

Some couples choose to take out joint life cover. In this case, both people are covered under one premium. The policy pays out when the first person passes away. The policy will end here, with no second payout when the second person dies.

But if either one has health issues or smokes, both may be charged higher premiums for a joint policy.

Couples may prefer to take out two life insurance policies. This can be more comprehensive, and shouldn't cause issues if the couple separates.

At SunLife, we don't offer joint policies with our over 50s life insurance. But we can offer two or more single policies for each individual in a couple.

You already have a policy

As part of your employment, you may be eligible for a death in service benefit. If you die while on the company’s payroll, your chosen loved one should receive a lump sum.

As you usually need to be employed by the company at the time of death to be eligible, payout isn't certain. Death in service payments are always written under trust and overseen by trustees. This means you will have no control over the payout.

Due to this uncertainty, many individuals take out an individual life insurance policy. This can give them control over the final payout. It also adds further protection to their loved one’s future finances.

Can you take out life insurance with more than one provider?

There are no restrictions on taking out multiple life insurance policies with different providers. You may want to shop around and compare different providers. But it could be worth checking in with your current provider as well. They may offer a discount on extra insurance policies.

What you need to consider with multiple policies

Managing multiple policies

Although it seems obvious, taking out additional cover will mean you have to manage multiple policies. Make sure the different premiums fit your budget, and keep all of the paperwork safe.

Making your beneficiaries aware

If you've taken out multiple policies, you'll need to let the beneficiary of each policy know. Even if you have one beneficiary across all policies, they'll need to submit individual claims for each policy when you pass away.

Should you take out more than one life insurance policy?

In some cases, multiple life insurance policies can work in your favour. For example, when strengthening a death in service benefit or taking out two policies as a couple.

But if you have a death in service benefit via work, you may no longer be covered if you leave employment or retire. (Unless your new employer offers the same benefit).

In that case, taking out a new over 50s policy could make things easier for your loved ones after your death. But you need to carefully consider whether this is the best option for you and your budget.

Multiple policies can add up, leaving you with an expensive monthly outgoing payment. It's important to consider what you need each policy for. For example, do your existing policies or assets already cover the expenses that you have in mind?

Talk to your existing provider to see if you can change your existing policy without being charged extra fees. (But remember that your premium may increase). If this isn’t an option, it may be beneficial to cancel your existing policy and secure a new life insurance policy.

How we can help

Protecting your assets and providing support for loved ones after death can feel overwhelming. Luckily, you have several options to help you figure out the best solution.

Our over 50s life insurance and Guaranteed Inheritance Plan are affordable ways to support loved ones after you pass. They could help them with funeral costs, or be a much-needed nest egg.

Unsure if you need to change your cover from an existing policy or take out multiple policies? Get in touch with our friendly team on 0800 008 6060 or get started with a quote today.

To learn more, read our guides on managing your money after 50.