In a life insurance contract, the insurance company agrees with the policyholder to pay a predetermined capital, an income or a benefit to the persons designated by the client, in exchange for a premium (the price of the insurance). But there are many types of life insurance, depending on their coverage and the reason that motivates them. So it is possible that we have several life insurances contracted at the same time, with the same company or in different insurance entities, although not all of them are designed for the same contingencies.
The current legislation It allows you to take out more than one life insurance, so we could say that you can take out as many as you can afford to pay. The beneficiaries of these insurances can be all the people that we consider necessary and The law also does not limit the number of life insurance that the same beneficiary can collect, neither simultaneously nor at different times. They should only request it at the time, for example, of death, if that is the contingency that the insurance covers. Of course, the beneficiaries will have to pay the corresponding taxes for the collection of each of these insurances.
So having more than one policy will depend on the level of risk that we want to insure, since, ultimately, the objective of that policy is to cover a risk, which may be the death, disability or illness of the insured. And, of course, we are talking about prevention, since these risks to be covered must not have occurred before the contract was signed.
All in all, taking into account that today there are a large number of life insurance associated with financial products, the most normal thing is that we already have one. And there are different types of life insurance policy, depending on the period of coverage of the policy, the cause of the contract and the type of premium.
Types of policies
For example, term life insurance may establish coverage only for a specified period of time, after which the insurance expires. Or you can take out a renewable term life insurance, in which once the initial coverage period is over, it is automatically renewed for annual periods, unless either party decides not to renew it when it expires.
If we look at the cause that motivated the hiring of life insurance, it can be free or linked to an asset that we want to protect. In the first case, the policyholder’s motivation is solely and exclusively to be covered, without any other additional interest. Instead linked life insurance is taken out to protect the asset to which the insurance is linked. The latter are the ones that financial institutions sometimes make us contract when we apply for a mortgage loan, to protect the payment of said loan in the event that any of the contingencies provided for in the policy occur to us (normally death, disability or illness).
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