Yes, it is perfectly OK to have two life insurance policies, and it is a great way to create a safety net and provide additional financial protection for yourself, your loved ones, and your assets. Having multiple life insurance policies can also help with estate planning and ensure that your family is taken care of after you are gone.
Here are some of the benefits of having two life insurance policies:
• Financial protection: Having two policies can help provide more financial protection for your family. Both policies can be written as term or whole life insurance depending on your needs. By having two policies, you can build a larger safety net that can cover your family's needs, even if one of the policies fails or expires.
•Estate Planning: Having multiple life insurance policies can help alleviate some of the financial burden of estate taxes and other expenses related to probate. With two policies, it can be easier to liquidate assets or use the proceeds of a policy to cover the costs associated with settling an estate.
• Flexibility: Having multiple policies also provides flexibility. If an emergency arises, one of the policies can be used to cover the costs associated with it, while the other policy will remain in place to protect the family from future financial losses.
• Lower premiums: Having more than one life insurance policy can also help to lower your premiums. When combined, the premium costs for two policies can be much lower than the cost for one policy with the same benefit amount.
Ultimately, the decision to have one or two life insurance policies should be based on your specific situation and needs. Be sure to speak to an insurance professional to discuss your needs and explore your options.