Wondering if you can take out multiple life insurance policies? The short answer is yes. However, while it’s perfectly legal, it’s not always the best idea.
Yes, you can! But with MiWayLife you could get all the coverage you’d need with just one policy.
Wondering if you can take out multiple life insurance policies? The short answer is yes. However, while it’s perfectly legal, it’s not always the best idea. Fortunately, MiWayLife offers a simpler, all-in-one solution so you might not need to overpay for multiple policies and endure unnecessary paperwork.
Why Do People Take Out Multiple Life Insurance Policies?
There are lots of reasons why some people want multiple life insurance policies, but they’re not always necessary and in many cases see the owner overpaying unnecessarily. In some cases, people want a large coverage amount for long-term financial security and another to pay for the expenses related to a funeral. Also, different policies might offer unique benefits - like a terminal illness payout or accidental death cover. If they can’t find one that gives you all the benefits you want, they might feel the need to “mix and match” to feel fully protected. They might also start with a smaller, inexpensive policy and then find they can’t increase their cover amount, so rather than cancel that policy, they take out another to increase their cover amount.
The Downside of Multiple Policies
While it sometimes seems logical, having more than one life insurance policy can come with negative consequences. Each policy has its own premium, and these can add up quickly. For instance, if you’re paying R300 monthly for one policy and then add another funeral policy at, say, R150 monthly, you’re now spending nearly R450 a month - potentially more than necessary and straining your budget for the same coverage you might get for less from just one policy. Also, many policies offer similar benefits - like funeral cover or terminal illness payouts. Without carefully review, you might pay twice for the same thing.
Then there’s the hassle factor. Managing multiple policies means juggling different debit orders, policy documents and claims processes. If your details change, you’ll need to update each insurer separately. That’s a lot of admin! Later, when it’s time to claim, beneficiaries might face delays or disputes if multiple insurers need to verify the same event. Fraud concerns could also arise if insurers suspect misrepresentation across policies, even if unintentional.
MiWayLife: One Policy, All the Benefits
At MiWayLife, we believe in keeping life insurance simple. Our 4-in-1 policies all include life cover, a funeral cover benefit and a terminal illness benefit that pays out 50% or 100% of your cover amount - the choice is yours - before you pass away. Plus, you can add funeral cover for your spouse, children, parents, and even extended family under the same policy. This means one premium, one debit order, and one point of contact - no need to shop around or manage multiple insurers. Our policy starts when the first premium is collected and benefits escalate annually by 5%, ensuring your cover keeps pace with inflation. Better yet, you can reduce or increase your life cover amount at any time!
Start your online MiLifeCover Quote
The Bottom Line
Why juggle extra policies and admin when you can get everything in one place? With MiWayLife, you can avoid the hassle, keep costs down and still enjoy adequate coverage tailored to your needs. Why not get a quick quote from MiWayLife today?
Did you know:
You can now take out life cover with us online in a few simple steps. No calls and no agents! Make sure to take care of those you love today by buying MiWayLife cover online.
