Can I have multiple life insurance policies?

Can I Have Multiple Life Insurance Policies?

The simple answer is yes, you can have more than one life insurance policy. Multiple policies allow you to put more money into maximum over-funded policies as your income grows. It’s quite common and often recommended to have multiple policies, especially when using permanent cash value life insurance as part of your retirement income planning strategy. Let’s explore some key reasons why you need multiple policies.


I totally get why people ask if they can have multiple life insurance policies. They know that their income is going to increase over time. And since Maximum Over-funded policy do not allow for any more premium, multiple policies are the only solution.

My clients almost always purchase maximum over-funded policies. When you understand the value of a Life Insurance Retirement Plan (LIRP), you want to put as much as you can into the policy. Young people tend to see rapid increases in their incomes over time. Since their ability to save increases, they will often want to increase the amount they are saving in their policies.

It’s important to understand that a . The only option is to purchase multiple life insurance policies.

Rather than just increasing the Death Benefit on a policy for yourself, I want to show you how you can spread the money around to policies covering your spouse, children, and even your business interests. I’ll also show you some ways that you can better protect yourself.

Max-funded Policies and Death Benefit Protection

Popular policies like whole life and indexed universal life allow you to overfund the policy for maximum cash value accumulation. This cash value grows tax-deferred and can be accessed tax-free for retirement income through policy loans. These are the same policy designs my Real Estate Investor clients would use for The Double Play.

However, to prioritize cash accumulation, these policies are purposely structured with lower death benefit coverage. This trade-off makes sense for retirement income needs, but may leave a shortfall in your family’s death benefit protection, especially in your younger years.

I would be remiss in neglecting to take an opportunity to show you how you can inexpensively address your family’s life insurance needs without sacrificing Cash Value accumulation.

Layering Term Life Insurance  

This is where layering an affordable term life insurance policy on top of your cash value plan can provide a solution.[1] Term life gives you high levels of temporary death benefit coverage for a relatively low cost.

By adding a 10, 20 or 30-year term policy when you are younger, you protect your insurability and create an adequate death benefit for your loved ones during your highest income-earning and financial obligation years. As you get older and build cash value, the need for the term policy decreases and you can let it expire if needed.

Stacking term life insurance essentially supercharges your death benefit while still allowing you to prioritize cash value accumulation for retirement income purposes with your permanent policy.

Where to Put the New Policies?


One of the primary reasons for having life insurance is to provide financial security for your spouse or partner in the event of your untimely passing. However, it is important to realize that YOU may need protection as well. Are you dependent upon your spouse’s income? Can you work and do business travel if your stay at home wife passed away?

The first place you should put a second policy is on your spouse. A life insurance policy can help cover outstanding debts, mortgage payments, childcare costs, and living expenses, ensuring YOU are covered.

You should also consider putting a term policy on your spouse when you get your own policy. This will insure that you are protected until you can afford to start a maximum over-funded policy.


In addition to covering your spouse, you may also want a separate policies for your children. The death benefit from a children’s life insurance policy can be used for expenses such as college tuition, inheritance, or any other costs associated with raising them to adulthood.

Term Insurance  and Children

You should be aware that life insurance companies will only provide permanent insurance on children. You cannot get term insurance.

My Thoughts on College Planning 

While you can put policies on your children, you may not be able to put as much into these policies as may be necessary for tuition. You need to know that many insurance companies will limit the coverage in children to one-half of the coverage on both spouses.

That said, I believe that college planning should primarily be done in YOUR policy. If you are the primary or co-breadwinner in a family, you want to make sure that your children are completely covered in the event of your passing.

Survivorship Life Insurance (Second-to-Die Policy) 

A survivorship life insurance policy, also known as a second-to-die policy, covers two lives, typically spouses or partners. The death benefit is paid out after the second person passes away. This type of policy is often used for estate planning purposes, providing funds to cover inheritance taxes or leaving a legacy for heirs.

You should make sure that you and your spouse each have adequately-funded individual policies before setting up a survivorship policy.

Maximum Over-funded Policies 

It’s important to know that survivorship policies also result in greater cash accumulation. Because they insure two lives, the cost of insurance is lower. A survivorship policy is also a great option if one spouse is un-insurable for some reason (Cancer, for example).

Business Needs 

If you’re a business owner, you’ll want a policy to protect the company’s interests and insure against the death of a key employee, partner, or owner. These policies fund buy-sell agreements and provide liquidity for outstanding loans and transition costs.


Multiple policies will allow you to put more premium into maximum over-funded policies as your income grows. However, as you can see, there are various scenarios where having multiple life insurance policies is advantageous. It’s essential to carefully assess your specific needs, financial obligations, and long-term goals to determine the appropriate amounts and where to put it.Remember, life insurance is not a one-size-fits-all solution. By working with me, we can tailor your coverage to meet your unique circumstances and ensure that your loved ones are financially protected, no matter what life throws your way.

[1] I recently wrote an article addressing the layering of policies. Check this out.

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