Can you have life insurance with two companies?

FREE Life Insurance Comparison

 Secured with SHA-256 Encryption

Compare quotes from the top life insurance companies and save!

Important things to know...

  • There is no requirement to meet all your insurance needs through one company
  • Life insurance is based on a concept called “insurable need”
  • As long as the total of your life insurance policies is supported by the value of the assets you’re insuring, you will not be considered over-insured

There is no requirement to meet all your insurance needs through one company. An application for insurance will always ask which other companies you are currently insured with.

On a second or third application, you will be asked why you are requesting more coverage; and you will have to back up your request with proof of additional need.

The insurance company also will have to clarify whether the new policy will replace a previous policy and why or if it will be in addition to the previous policy.

But once the insurable need is established, that question goes away. Any insurance company might like to have all your business, but there is no legal requirement that you give it all to one.

Learn more about insurance policies below and make sure to use our free quote tool above! Just enter your zip and start comparing rates today!

Reasons to Own Life Insurance from Different Companies


You purchase policies at different times, with different features.

Depending on the type of insurance you have term life, whole life, universal life, or indexed universal life the products offered may have an investment component and different companies use different growth strategies for these products.

You may want to try out different features at different companies; and as long as you have the assets to back it up, there is no reason why not.

Some people might believe they are diversifying when they buy from different companies. In fact, in the United States, there is little risk of losing money due to an insurance company going out of business.

If any company fails, their client list will be picked up and serviced by one or more of the remaining companies and it is a system that has worked over and over again, with banks and with insurance companies.

The insurance industry is among the strongest in the U.S. economy. Depositors can count on their accounts being moved to another company; the terms of their insurance contract intact.

Potential Reasons to Give All Your Life Insurance Business to One Company


There may also be good reasons to stick with one insurance company.

With some companies, you may have an assigned agent whose job actually is to look out for your interests. The level of customer service may be higher and will be part of what you pay for at the brand name companies.

A dedicated agent, who will be knowledgeable about all the different kinds of insurance and how they are used to protect income and assets, may save you time and money.

If you have cash-value life insurance, the type that has an investment component, the writing agent should be reviewing your policy a couple of times a year and reporting back to you about how it’s doing.

A dedicated agent feels like an “account manager” or a broker.

They keep their eye on the ball, so you don’t have to.

Some companies offer discounts on additional policies you open with them.

There are other reasons for letting one company handle all your insurance business, but these are among the most common.

Why There is Such a Thing as Too Much Insurance


In case you’re thinking that you can’t have too much insurance — not so fast! There are reasons to avoid being “over-insured.”

  • Insurance companies are in the business of assessing and managing risk. Fraud is one of the major risks an insurance company faces, and they evaluate every application they receive for any detection of fraud.
  • The appearance of over-insurance will most likely be questioned and could trigger a fraud investigation if the amount applied for is too wildly out of sync with the applicant’s balance sheet and lifestyle. The applicant will be asked to justify the additional insurance.
  • While your ownership of insurance policies may not be public record in the same way as when it comes time to collect on the policies, questions will be asked and will have to be answered. This may not be comfortable for the beneficiaries, who may know few, if any, of the policy details.
  •  If you are carrying more insurance than you need, you will be paying for more insurance than you need.

A Licensed and Experience Insurance Agent is the Answer


The thicket of life insurance, the right kind and the right amount can be navigated much more easily with the help of an experienced life insurance agent.

Whether you go to one that represents a trusted brand, or one who can represent a range of companies, they can assess your need and your changing needs.

They are also required by their licenses to keep up with changes in the laws, both federal and state. Ultimately, if you are well served, they can save you a lot of time, and money.

Life insurance is regulated by the state.

Use the National Association of Insurance Commissioners (NAIC) website to locate your state and find a reputable life insurance agent.

You can check out the status of any state agent’s license, their company affiliations, and more. It is a good idea to do so before you work with them.

You can check out the status of any state agent’s license, their company affiliations, and more. It is a good idea to do so before you work with them.

Don’t miss out on our free comparison tool below! Just enter your zip code below and start comparing rates today!

Start Saving on Life Insurance!

Enter your zip code below to compare rates from the top companies in your area

 Secured with SHA-256 Encryption