Last Updated on 17/08/2022
Quora News: Currently, it is common for all of us to have some life insurance contracted, but with the times and with the amount of insurance associated with the financial products offered by financial institutions, it is not surprising to have more than one life insurance; But, can you have more than one life insurance?
Legally yes, because there is no problem for a person to have different life insurance in their name. Therefore, the same person may contract as much life insurance as he considers necessary or appropriate.
The justification is that the life insurance contract serves as coverage of the capital that we have at all times.
For example, when we take out life insurance associated with a mortgage, we do so in order that in the event of death the outstanding debt of the mortgage is paid, and that our relatives do not have to face the pending payments of the same.
The same occurs with life insurance contracted without being linked to another product, in this case, what is intended to ensure is that in the event of death, the beneficiaries of the same have a capital margin to meet the usual expenses that may be generated.
It is possible to have several life insurances
One of the advantages of life insurance is that the funds considered insured capital are unattachable, in addition to enjoying tax benefits. Hence, many people, especially those who are providers for their families, decide to take out more than one life insurance, since it is a way of guaranteeing secure financial support to their beneficiaries. Now, there can be several cases when a person has more than one life insurance:
Different life insurance with the same beneficiaries
When the beneficiaries of the different policies are the same or the same people, they will receive a benefit for each of the insurances in which they will appear as beneficiaries, so that if there were 2 life insurances for which the children of the deceased would be entitled to an indemnity of 100,000 euros from one of the insurances and 30,000 from the other, you will collect all of these amounts and not just a part of them.
In these cases, the insured seeks to increase the insured capital that their beneficiaries will receive. It may also be due to the fact that it seeks to expand coverage, that is, to complement one insurance with another.
For example, life insurance may not cover serious illnesses but have fewer exclusions regarding causes of death. By contracting both, the insured seeks to balance the protection they receive. In the event that the cause of death is covered in both insurances, your beneficiaries will receive the total from both insurers.
Different life insurance with different beneficiaries
In the event that the beneficiaries of the life insurance were different persons, the capital of each insurance will be attributed to its beneficiary, so that in the event of death, each of the beneficiaries will receive the benefit provided for in each of the insurance contracts in full. lifetime.
In these cases, the insured has a large family or wants to include people other than his consanguineous family as beneficiaries if he dies. Remember that insurance does not limit the insured on which people can be beneficiaries, as far as family or personal relationship is concerned, but it does limit the number of people per contract. Hence, it is logical to think that the insured contracts two or more insurances to cover each person they want.
Can I buy two or more life insurance in the same company?
If possible. The insured can choose the same insurer to contract second or third insurance, for example, if he wants to pay for different plans. Although you can also contract policies in different insurers without any problem.
In this case, the policyholder should notify the new insurer that other insurance already exists. Although this is not required, it can provide a negotiating environment to improve the terms of the new policy.
Can I change the beneficiary of the insurance after hiring it?
The beneficiary of the life insurance will be designated by the policyholder at the time of contracting it. Although later the policyholder may designate another beneficiary in addition to the previous one or modify this designation at any time, without the need for the consent of the insurer, as established in article 84 of the Insurance Contract Law.
The communication to add or modify the beneficiary of the life insurance can be done by means of written communication to the insurer or even record the modifications in the same will.
As we can see, having more than one life insurance is common, and since there is no type of impediment, it is convenient that sometimes we have more than one contracted life insurance.
As long as the insured can pay them, nothing prevents them from having several policies, in the same insurer or in different companies. This will allow you to increase financial protection for your beneficiaries or have more beneficiaries than a policy allows.