If your loved ones depend on you, then you will need to have life insurance. Therefore, having life insurance can stop you from worrying about the living expenses of your dependents.
If something happens to you, life insurance provides financial support to your dependents. However, many people usually wonder if they can have multiple life insurances.
Is it legal to have multiple life insurance policies in 2021? This blog will answer all the questions.
Related: Can you buy life insurance for a family member?
Is It Legal to Carry Multiple Life Insurance Policies?
Yes! It is legal to carry multiple insurance policies in Australia. In fact, having multiple super accounts means you have multiple life insurance policies. This is because most super funds provide default or automatic life cover.
If there are gaps in your existing life insurance policy, you can take out an additional life insurance policy. For instance, if you have life insurance inside your super account, you are free to take out life insurance outside your super account.
However, it is imperative to check with your current insurance provider before taking out an additional life insurance policy. This is because it can impact your existing life insurance policy.
Can I Make a Claim on Multiple Life Insurance Policies?
Yes! You can make a claim on multiple life insurance policies as long as you meet the terms and conditions of each insurance provider.
For instance, if your super accounts or funds are independent of one another, you can claim multiple insurance policies through your super.
Contact your life insurance broker to confirm if you can claim on multiple life insurance policies.
Popular Question: How much life insurance do you need?
Things to Consider Before Taking Multiple Life Insurance
Consolidate Your Super into One Account
Having duplicate super accounts can cost you more money in insurance premiums. Therefore, if you have multiple superannuation accounts, you might want to consolidate your super into one account. It is easy and cheap to manage one super. It can save more money on your insurance premiums and fees.
Know If You Really Need More than One Life Insurance Policy
If you are underinsured, you can apply to increase your insurance cover. However, if you do not need more than one life insurance policy, do not take out an additional life insurance policy. Why? It is expensive to pay two sets of premiums.
However, if you have 2 or more superannuation and you are looking to get multiple life insurance covers in Perth, Western Australia, contact Absolute Insurance. We can be your one-stop shop for multiple personal insurances.