Can You Have Two Life Insurance Policies at the Same Time?

Life insurance has been part of society for centuries, specifically since 1705, according to the documents that have been found. During all this time they have been established as a fundamental tool that people have to ensure our financial future as well as that of our closest beings.

We have life insurance but we also contract insurance for the home, for the car or for the latest generation mobile phone that we have just bought. And it is that, who does not prefer to avoid risks and have a backup in the event that something serious happens? Human beings naturally seek protection as it is part of our instinct, the more the better.

For this reason, we may find ourselves in a situation in which we already have life insurance but we see another one with better benefits or better value for money, so the question of “you can have two life insurance at the same time? Do not stop reading, we will tell you everything below!

Have two death insurance at the same time: allowed or not

The answer to the big question of whether you can have two life insurance It is affirmative, yes it can. In Spain there is no law or regulation that sets a maximum limit on policies that can be contracted per person, whether for life insurance or for another type of protection. However, in life policies it is where more cases of multiple contracting are usually found. But why would someone want to take out two life policies? Below we see the benefits of this choice.

Benefits of having two life insurance

The reasons that lead us to contract two or more insurances can be very varied, but what we are interested in knowing is how it benefits us if we make this decision.

• Complementation or greater coverage: when you feel that your life insurance may be insufficient or you want better protection, having two or more life insurance may be the option to get the security you are looking for.

• Increase the remuneration: the insurances have their limits agreed under the contract and the amount may change according to the conditions of the signed document. If you are looking to increase the amount that your beneficiaries will receive, you will benefit from this choice.
• Flexibility: life insurance is not the same when you are 45 years old as when you are 60, or when you are in different stages of life. An example would be taking out a second policy when you become a father, you are going to want the best for your relatives and insurance will be a way of giving them protection.

So, can two life insurance be collected?

As we have shown in the benefits, having more than one death policy can help us collect more money in the event that the policyholder dies. So yes it is true that two can be charged life insurances.

In a situation where the policyholder has perished, the beneficiaries of the corresponding policies may collect the insurance designated for them. Each company will pay the beneficiaries indicated in the respective contracts the agreed amount. One piece of advice that we give to people who have contracted life insurance is to periodically review and update the beneficiaries, in this way they guarantee that all the information is in order.

And, can the rest of the insurance be accumulated?

So, if life insurance can be accumulated, can we also have several home insurance? Now you may be wondering if you can collect two policies for the same accident, for example.

In cases where an accident occurs at home, in the vehicle or for which you have contracted several insurances, you will not be able to collect from both. This is due to Law 50/1980 on Insurance Contracts, which indicates that the contracting party “cannot be enriched unfairly through a policy.” This, in short, indicates that you cannot charge twice for the same incident. Life insurance is excluded from this law, applying only to tangible goods.

Other things you should know if you want to take out two or more policies.

If we talk about this topic, doubts may arise as the conversation progresses, so we bring answers to some of the most frequently asked questions about whether you can collect two life insurance.

• Does the contracted insurance have to be from the same company?

Not at all, if you intend to take out two insurances, they do not have to be from the same company, they can be from different ones. Nor do you have to choose the same benefits or pay the amount, as we have seen, flexibility and complementation are some of the benefits of having several at the same time.

• Do I have to do any paperwork before taking out a second life insurance?

It is not necessary to fill in anything, but it is advisable to check that you can assume the expenses of both policies, read the contracts carefully to verify that there is no exclusion requirement and avoid negative surprises, or request information from a professional, both internal and external to the insurance company.

• If I have life insurance linked to the mortgage, can I take out another one?

The life insurance linked to your mortgage covers the outstanding balance of your loan in case you die and your income stops entering your family. Generally, the legal heir of this life insurance is the bank or credit institution with which you have the mortgage. This means that if something were to happen, the mortgage debt would be paid off, but your family would not receive any extra money.

However, you do have the option of taking out separate life insurance, and it’s a good idea to do so if you can afford it. This way, you can choose your own beneficiaries and ensure that your family receives additional capital in case something happens to you. This provides them with more comprehensive financial protection and would give them greater peace of mind in the future.

very briefly

In short, yes you can have two life insurance, And each policy can provide valuable protection to the loved ones you’ve chosen as beneficiaries. However, it is essential to assess your financial needs and understand the terms of both contracts to ensure that you are making the right decisions to secure the future of yourself and your loved ones. If you have questions or concerns, don’t hesitate to consult a financial advisor or insurance representative for personalized guidance.