By on | Posted in: Buying a Policy

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When buying a life insurance policy, it’s important to recognize that they are very serious commitments. There are two main types of life insurance policies, term and whole life. Does having a single policy mean that it will fulfill your needs for the rest of your life? No. You can buy term and later think that having whole life is a better option. Or, you could decide to buy a brand new policy to stack on top of the policy you already have.



The Differences: Term and Whole Policies

Whole life and term life insurance policies work very different from each other. Whole life is what many will refer to it as a permanent life insurance, where they will pay a guaranteed death benefit no matter when you pass away, so long as your premiums are paid on time. Whole life is great for covering long-lasting financial responsibilities, such as estate taxes, that are left behind for your heirs.

Looking at term policies, they however only pay a death benefit if you die during your term – however many years you wanted your policy covered for which is usually 30 years or less. Term is usually good for helping your spouse and/or children if you’re no longer around to help provide an income. They are pretty inexpensive though, as most times, people are expected to live longer than the term of the policy. On the flip side, whole life can cost up to almost ten times the amount of the term policy for the same exact coverage.


When To Buy Both?

  • When you want more coverage over time: If you upgrade to a bigger house or have another child, you should most likely start considering adding additional life insurance. If you already have a whole life policy, maybe adding a term policy on top would be better and less expensive then adding another whole life policy.
  • When you can’t afford to get as much coverage as you want: Many people will put together both whole and term policies to save money without compromising coverage. Say you want a $500k whole life policy but are only able to afford half of it at $250k currently. You could add another $250k worth of term on top of the whole life to maintain the benefit level at a lower premium.
  • When you’re able to afford more coverage: Most families will start off with term life insurance because it was cheaper at the time but would have preferred whole life. If you and your family are still interested in buying a permanent policy, you can always do so by stacking on top of the term policy you currently have.
  • When you want to make sure you’re covered: This doesn’t happen very often, but life insurance companies can go broke and if it does happen, your coverage might be at risk.  Most states insure up to 300k in life insurance if an insurance becomes insolvent. It’s very important to make sure you research financial ratings before you buy. However, at, we shop the market of A (Excellent) or higher rated companies to ensure this could never happen to our clients. We want to make sure you and your family stays protected! They will shop over 50 companies when you are considering both whole and term life insurance.


Problems Possibly Encountered With Buying Two Policies

There is no strict limit on the number of life insurance policies you can have, it’s completely legal to get both term and whole life. If you want two term policies and one whole life policy, you can apply for them! When applying and going through the underwriting process for your policy, keep in mind that the insurer will ask about the coverage you currently have. They could decide to not issue the policy to you if they don’t see fit that you are able to pay for it, or that you do not have enough income/assets to justify the additional policy. Be ready to explain why you need more!

At, your agent will help you with any of your life insurance needs! What your agent will do is shop the market for A (Excellent) or higher rated companies to ensure that you and your family are covered and help you see the comparisons of the companies that are best fit for you as the best rate!

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