I have held a life insurance policy for 12 years with one company. Recently I saw an advertisement for a great life insurance deal offered by another company and with lower premiums. Can I sign up for another insurance policy or will I have to cancel my current one?
Lawyer Answers (1): Answers from lawyers are general preliminary responses. They are not formal legal advice and cannot taken account of all your circumstances. They do not create a lawyer–client relationship.
Answer by Neha Sharma, Hillsdale 2036 NSW
- There are no restrictions in the number of life insurance policies an individual may hold.
- Usually people with large amounts of responsibilities and liabilities get a number of life insurance policies to protect themselves and their families in case they:
- are unlikely to work again due to illness or injury;
- get seriously injured; or
- die.
- It is important to remember however that holding multiple policies means paying multiple fees and multiple premiums. Some companies offer a higher level of insurance cover and it may be more cost-effective to increase the amount payable under your existing policy rather than taking out a new policy.