How many Life Insurance policies??

JESSROBBIE

I am a 40yr old male with dependants and NO life insurance.
I was wondering if it is possible to take out life insurance policies with more than one company and if there are any benefits/drawbacks to this.
I would also be grateful if anyone can show me where I can sample a typical questionaire to a Level Term Policy showing a complete terms and conditions page.
Thanks......

dunstonh

I was wondering if it is possible to take out life insurance policies with more than one company and if there are any benefits/drawbacks to this.

You can have as many as you like (as long as an insurable interest remains).

There is no advantage to having multiple providers and only disadvantages as it would be multiple claims forms, death certs and possible executor costs due to extra workload.

naijapower

another obvious disadvantage is the fact that you pay multiple premiums....

JESSROBBIE

Thanks.
Was just thinking about taking out a low cost policy just now and then another policy(possibly with another provider) in the future when finances improve.

JESSROBBIE

dunstonh wrote: »

You can have as many as you like (as long as an insurable interest remains).

There is no advantage to having multiple providers and only disadvantages as it would be multiple claims forms, death certs and possible executor costs due to extra workload.

Does an insurable interest mean that you cannot insure yourself for more than your worth?
Therefore a wealthy person can insure for more than an average earner even though they can both afford the same monthly payment ????

OshayAway

JESSROBBIE wrote: »

Therefore a wealthy person can insure for more than an average earner even though they can both afford the same monthly payment ????

Correct. Once an individual applies for a certain level of cover, whether it be one policy or additional cover that in conjuction with existing cover tips a certain level, a financial questionaire is required (to be completed by the individual or accountant etc depending on the figure and limits).

So the ability to afford the monthly premium is not the qualification for being eligable to take out a certain level of financial protection.

JESSROBBIE

OshayAway wrote: »

Correct. Once an individual applies for a certain level of cover, whether it be one policy or additional cover that in conjuction with existing cover tips a certain level, a financial questionaire is required (to be completed by the individual or accountant etc depending on the figure and limits).

So the ability to afford the monthly premium is not the qualification for being eligable to take out a certain level of financial protection.

Which brings me back to the original question"How many policies"?
Surely when u apply for insurance with different companies some will avoid the "maximum limit type question" coz they dont want to lose a sale???.
Where can I find out what my "Limit" is ?

OshayAway

JESSROBBIE wrote: »

Which brings me back to the original question"How many policies"?
Surely when u apply for insurance with different companies some will avoid the "maximum limit type question" coz they dont want to lose a sale???.
Where can I find out what my "Limit" is ?

They all ask the question but the limits vary. Some have recently put up the limits considerably and ask: "Are you insured elsewhere in excess of £2m for life cover?"

Age and sum assured limits are different though and have an effect on what medical evidence the insurer will require for underwriting, regardless of past and present health issues.