Is It Legal to Have Multiple Life Insurance Policies in Australia?
We keep hearing about life insurance and how important it is to protect your family. So what’s the big deal about life insurance? Many people think it’s just for those that are dying or ill, but it’s not. It’s actually for those very much alive, and who will be alive if you pass. We get it – no one wants to think life insurance if they have to think about maybe dying! A life insurance policy is important to consider, especially if you are the breadwinner of the family. If you’re already considering life cover, then you may also ask if you can have multiple life insurance policies in Australia and then of course once you know that you can compare your life insurance policies through Billy Explores!
What Is Life Insurance?
Of course before we can discuss whether you can have multiple life insurance policies in Australia, we need to understand what life insurance actually is.
Life Insurance is also called ‘death cover’ (yes – this is morbid!). It is meant so replace any income you would have earned if you die, or there is another policy which covers if you can no longer work. You can purchase a life insurance policy which will pay an agreed lump-sum, providing financial protection for your family.
Your individual circumstance will impact the amount of life insurance you purchase, or if you have multiple life insurance policies. If you already own your home, you may need less than someone who still has a mortgage. Likewise if your family has considerable debts or loans, you may want your life insurance policy to cover those costs in full. A life insurance payout can give your family the chance to grieve without worrying about how they’re going to pay the bills. Find out more here and here.
Can I Have Multiple Life Insurance Policies in Australia?
You would think the more protection the better right? To protect your family it would be better to have more than one life insurance policy. Multiple life insurance policies would be best -well the reality is a little complicated.
Legally yes, you can have multiple life insurance policies in Australia. There’s no law that stops you from doing this to protect your family. Of course, it’s always best to compare your life insurance policies before you purchase a life insurance policy in Australia.
Why Would I Want To Have Multiple Life Insurance Policies in Australia?
There are many reasons why your needs ay have changed and you need multiple life insurance policies. For example:
- You want to get a better life cover to protect your family and your life insurance payout may not cover the current financial responsibilities that have changed.
- You have made positive life health changes, such as stopping smoking, and want to compare your life insurance policies to get a better life insurance policy
- You would like to take out single life term life insurance policies and have multiple life insurance, to cover any shortfall in life insurance payout in the event of a life insurance claim
Do I Need More Than One Life Insurance Policy?
While it is possible for you to have multiple life insurance policies in Australia, it depends on your individual situation on whether you should have more than one life insurance policy, which is why it best to compare your life insurance policies.
As A Couple Can We Have Multiple Life Insurance Policies?
There is at life insurance policy called “joint life insurance” – you may have heard of it, but are you able to have more than one life insurance policy with your partner? Yes, and would you believe some couples actually prefer it that way and have the joint life cover.
A joint life insurance policy in Australia covers two lives, but normally pays out upon the death of the first insured person during the policy term, after which the life cover will be finished. In contrast, taking out two single term life insurance policies means the surviving partner will still have cover in place after the first death, in case something happens to them in the future.
It’s a good idea to compare life insurance options and your life insurance policy in Australia before you make this decision. Insurers won’t pay the life insurance payout twice if you have a joint policy mean you won’t be covered, however this scenario the other person could still request to continue their cover in the form of a new single life insurance policy.
Can I have Multiple Life Insurance Policies With More Than One Insurer?
Yes, you can have multiple life insurance policies with different insurers. It is legal. However, you may find it best to compare life insurance options and find out that multiple policies with the same provider might offer you a discount for tour life cover.
Compare Multiple Life Insurance Options and Your Life Insurance Policy in Australia
As we’ve said, if you’re after any life insurance polices in Australia, it’s a great idea to compare life insurance through Billy Explores! Not only will you save time and effort, you will be able to explore potential savings, especially if you want to have more than one life insurance policy. We can even help exploring multiple life insurance options!