Can You Take Out More Than One Life Insurance Policy?
Find out more about whether you can take out multiple life insurance policies right here with Savvy.
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If you're considering taking out a life insurance policy, you may be wondering if it's possible to take out more than one policy. The short answer is yes, you can have multiple life insurance policies in Australia. However, there are some things to consider before doing so.
You can explore how to buy multiple life insurance policies, the pros and cons of having more than one and tips on how to decide if it's the right option for you in one place with Savvy. Before you start the purchase process, learn about your life insurance options with us.
Is it possible to buy more than one life insurance policy in Australia?
Yes – it’s possible to buy more than one life insurance policy in Australia, provided you meet the terms and conditions of each. In fact, many people choose to have multiple policies to ensure they have enough coverage to meet their needs. This approach can be referred to as “stacking” policies.
There are several reasons why someone might consider buying more than one life insurance policy. One reason could be to have coverage for different needs. For example, you may wish to take out life cover with a lump sum insured, but this would only pay out upon your death or terminal illness diagnosis. As such, you might also wish to add an income protection policy, which can partially replace your income if you’re temporarily unable to work due to illness or injury.
Another reason to have multiple policies is to spread the risk across different insurers. Depending on their terms and conditions, you may qualify for a payout from one and not the other. In this case, it can serve as a safety net if you’re unsure whether particular events are covered by your first policy.
However, it’s important to note that when applying for multiple policies, you’ll need to disclose any existing policies you have. The insurer will likely take into account the total amount of coverage you have when determining your eligibility and premiums.
Will I be able to make a claim on more than one life insurance policy at once?
It’s possible to make a claim on more than one life insurance policy at once. As long as each claim meets the terms and conditions of your respective policies and you’ve disclosed to each subsequent insurer that you have insurance in place, you can receive payouts from multiple insurers at once.
When making a claim on multiple policies, it is important to provide all the necessary documentation to each insurance company to ensure that the claims are processed efficiently. This will include a copy of the death or relevant medical certificate, the policy documents and any other relevant information which the insurance company requires.
It is also important to keep in mind that if you have multiple life insurance policies, the total cost of premiums will likely be higher than if you had a single policy with the same overall coverage. However, when assessing whether it’s right for you, you may deem this a suitable cost to pay for the added protection that comes with further coverage.
Can I bundle multiple policies with the same insurer?
Yes, you can bundle multiple life insurance policies with the same insurer in Australia, provided you qualify for coverage under each of their plans. Many insurers offer discounts for bundling multiple policies and it can make managing your insurance needs easier, as you'll only have to deal with one insurer for all of your policies.
The types of insurance you may be able to bundle are:
- Life cover: can pay out a lump sum benefit in the event of your death or terminal illness diagnosis
- Income protection cover: can pay an ongoing monthly benefit if you’re unable to work following illness or injury
- Total and permanent disability (TPD) cover: can pay out a lump sum benefit if you’re permanently disabled and unable to return to work
- Trauma cover: can pay out a lump sum benefit if you’re diagnosed with a critical illness or suffer a major injury
However, it's important to note that bundling may not always be the most cost-effective option. If you're considering bundling your life insurance policies with the same insurer, it's a good idea to shop around and compare quotes from different insurers to make sure you're getting the best value for your money.
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Disclaimer:
Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of life insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a life insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.
Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.
For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.