Why do life insurance companies ask if you have other insurance

Many people purchase life insurance policies to make sure their loved ones are taken care of after they pass.

But that brings up the question, “Can you have more than one life insurance policy?” The answer is yes, but there are some things you should understand before you buy more than one insurance policy.

Reasons to Have More Than One Life Insurance Policy

There are many reasons why someone may want to purchase more than one insurance policy.

For instance:

• You own a business and want one insurance policy to cover your family’s needs and another to take care of the business obligations.
• You want to leave your family a large inheritance and want a separate policy for that, along with a policy that will cover any outstanding debt such as mortgages, car loans, or other financial obligations.
• You want to make sure that your final expenses are paid for when you pass.

  Burial insurance pays out faster than other insurance policies – in about 24 hours – and that relieves the financial burden from you