Can you have more than one over 50s plan?


Can you have more than one over 50s plan? main image

Can you have more than one over 50s plan?

You can have more than one over 50s plan and beneficiaries can make multiple life insurance claims when you die. However, providers do restrict the maximum amount of life cover allowed per person, which ultimately means there are limitations on the number of over 50 plans you can have.

Why would you have more than one over 50 plan?

People buy multiple over 50 life insurance plans for many reasons. For example, you may want to:

  • Keep up with rising funeral costs
  • Help with funeral costs and leave money to family
  • Increase a cash gift left to family
  • Leave money to new family members

Or you may just have more free cash available now on a monthly basis than you did when you took out your original plan.

At the end of the day both the amount you pay monthly and the cash sum paid out are fixed, so will never increase. Therefore what seemed the right level of cover several years ago, on reflection may now be insufficient.

Which is why flexibility around the number of over 50 plans you can have could help.

How may over 50s plans can I have?

The number of over 50 plans you can have will depend on your insurer. The restriction is usually based on either the amount you pay in monthly premiums, the total cash sum paid out when you die or both.

Here are the limitations on the number of over 50 plans you can have with the UK’s leading life insurance providers:

Company

Maximums

Royal London £100 per month maximum premium / £10,000 maximum payout
Sunlife £100 per month maximum premium / £18,000 maximum payout
One Family £75 per month maximum premium / £20,000 maximum payout*
Shepherds Friendly £50 per month maximum premium
Aviva £100 per month maximum premium
Legal & General £10,000 maximum payout

*£10,000 maximum payout for anyone aged 59 or younger

There are some over 50 plans that give you the flexibility to increase or decrease your monthly premium and level of cover - like the one offered by British Seniors

With a policy like this it may not be necessary to have multiple plans, as you can just change the cover on your existing plan in accordance with your needs.

Can I have more than one life insurance policy in the UK?

When it comes to regular life insurance policies, different rules apply regarding the number of plans you can have. Basically there aren’t the same restrictions with life insurance as there are with over 50 plans, so you can have as many as you want – within reason.

I say within reason because as part of the application process, insurers check what life cover you already have in place. Your acceptance is then based on risk, as no insurer wants to over-expose themselves to one individual.

Therefore it’s unlikely you will be approved for any life cover that isn’t deemed necessary.

There are many reasons why you might want multiple life insurance policies; with each perhaps serving its own specific purpose:

  • Pay off the mortgage
  • Protect the family
  • Cover inheritance tax
  • Leave an inheritance
  • Protect business interests

Can you have a joint life insurance policy?

Most over 50 plan providers do not offer joint plans, however there are exceptions to the rule such as British Seniors. Instead, Over 50 life insurance companies suggest you take out two plans in each of your names – so one plan each.

You can get regular life insurance for couples that pays out a cash sum if either partner dies during the life of the policy. Joint life insurance usually pays out on the first death, at which point the policy ends.

This leaves the surviving partner uninsured, so it’s worth considering whether it’s better to have a joint policy or two single life insurance policies instead.

Is it better to have joint or single life insurance?

If you want couple’s insurance, it’s worth comparing quotes for joint life insurance and two single plans. Afterall joint life insurance isn’t always cheaper, will have a lower cash sum than two plans and only cover the death of one person.

In addition, if the relationship ends you will probably want to cancel your joint life insurance. Something you may not necessarily want to do if you have single plans in place. This could in turn mean that you will lose all the money you have paid into it.

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