It is possible to take out more than one life insurance policy on yourself, but if you opt for this route then care must be taken not to "over insure" yourself.
Multiple life policy considerations
- Stretching budgets. Having too many policies can cause increased financial strain in tough economic circumstances.
- Pay-out times take longer. It could take your family and beneficiaries longer to claim from multiple insurers due to the extensive processing and requirements.
- Unclaimed benefits. There is more chance of family members not knowing about all of your life policies and the various benefits attached to them when you have multiple policies. This could result in some payouts or benefits remaining unclaimed after you pass away.
- Complicated policy management. While insurers do their best to make taking your policy as hassle-free as possible, you still have to go through the process of taking the policy out and then keeping track of the paperwork; claims procedures, changes in premiums, exclusions and so on. Managing one policy with help from your insurer is far easier than trying to juggle six or seven.
In South Africa, many people have more than one funeral cover. This is often a mixture of formal policies and informal burial societies. Many reputable insurance companies will pay less in cases where there is more than one policy, with different companies. Funeral policies do protect policyholders against financial hardships and the immediate expenses of funeral costs when someone passes away, whereas taking out life insurance goes beyond just covering the costs of the funeral and ensures that your dependents are provided for in your absence.
An established insurance company will discuss the best option for your needs, and make sure that your policy and cover amounts are sufficient enough to provide for all eventualities.
MiWayLife has solved the dilemma of feeling the need to 'over insure' yourself with multiple policies by offering a combined policy which includes both funeral and life cover. By consolidating all the life-related policies that you need into one affordable policy, MiWayLife cuts out the admin and financial strain that can come with holding multiple policies.