The number of life insurance policies you can have is not fixed. The number of life insurance policies you can have depends on your personal needs and insurer approval. According to the Canadian Life and Health Insurance Association in the Canadian Life & Health Insurance Facts 2023 Edition, over 22 million Canadians own $5.5 trillion in coverage across different policies. This shows that multiple policies are common and often necessary.
A single life insurance policy may not be enough for every household. For instance, you may buy one policy to cover your mortgage and another for your children’s education. By layering coverage amounts this way, your insurance provider can tailor benefit amounts. That way, they meet different financial needs. Some families also use policies for estate planning so inheritances remain protected.
Insurance providers allow people to hold several policies, but there are coverage limits. The approval often depends on your age, income, and the coverage amount requested. Insurers want to make sure the benefit amounts reflect a real financial need.
At IBC Financial, we help combine single life insurance policies with permanent protection. This approach ensures short-term coverage for immediate needs. While also securing long-term financial security for final expense insurance. The following sections will take you through the dynamics of owning multiple life insurance policies.
It is possible to have multiple life insurance policies in Canada, as it increases your coverage. Multiple life insurance policies ensure that your family receives the right benefit amounts. According to LIMRA’s 2025 report titled Canadian Life Insurance Sales Post Fifth Consecutive Quarter of Growth, annualized premiums rose by 5% year-over-year. This rise shows that Canadians are steadily investing in insurance policies for added coverage.
People often hold a mix of term life insurance and permanent life insurance. A term life policy may cover debts for 10 or 20 years. But a permanent life insurance policy offers lifelong protection and potential cash value. Some also have group life insurance through their employer, and then buy another policy from a private insurance company. Each policy term is issued separately, and most insurers require a medical exam to verify your health. Premium payments continue as normal, but each policy is billed separately.
Owning multiple policies allows flexibility. For example, you may want permanent coverage for estate planning, and a smaller term life policy for your children’s schooling. Others use policies with cash value growth to build cash savings they can access later. At IBC Financial, our advisors recommend reviewing all the policies with one insurance provider. And then adding another.
You can have multiple life insurance policies, but getting approval depends on the rules of each insurance company. Multiple life insurance policies must satisfy financial guidelines before being approved. According to the CLHIA’s Canadian Life & Health Insurance Facts 2024 Edition, the average household coverage amount is $483,000, which shows that benefit amounts must reflect realistic needs. This prevents over-insurance while still protecting families.
Multiple policies can be structured in different ways. You may choose a whole life insurance plan for lifelong cash value. Then, add a universal life policy for investment growth, and hold a term life policy for affordable temporary coverage. Some families also buy a joint policy that covers both spouses. Policies may also include an insurance rider, such as guaranteed insurability. It lets you increase coverage amounts without another medical exam.
Having more than one policy also supports estate planning. Some policies secure inheritances while others pay for debts or final expenses. Families may use cash value from a whole life policy to cover emergencies. While doing so, they rely on term life policies for larger coverage amounts. Coverage limits vary, but most insurers design policies so the total benefit amounts match your income. From past campaigns, an IBC Financial advisor has seen clients build a mix of policies. In order to protect estates, children’s futures, and long-term care needs.
The pros and cons of owning multiple life insurance policies include added flexibility in coverage. The pros and cons of owning multiple term life insurance policies also include the stress of managing different payments.
According to Matthew Roberts of MyChoice.ca, in the article Pros & Cons of Owning Multiple Life Insurance Policies, multiple policies can be beneficial, but they are challenging to manage. Depending on how you actually use them;
Pros include:
Cons include:
In the end, IBC Financial experts state that multiple permanent life insurance policies can be useful if you’re strategic. But without planning, you might end up paying more than necessary or doubling up on cover that isn’t really needed.
You can have more than one life insurance policy for a better death benefit, like many people already do. You can have more than one life insurance policy since one plan doesn’t always cover everything. According to Canada Life, in What is coordination of benefits?, when you’re covered by more than one plan, they work collaboratively to pay cash value claims.
They may also solve different needs, for example:
Insurance companies usually allow this as long as the total amount of cover makes sense. They’ll look at your income and obligations before approving multiple applications. So there’s no strict rule saying “one policy only.” The real measure is whether the combined coverage looks reasonable for your situation.
An expert IBC Financial advisor states that having more than one policy or a policy rider can give you peace of mind. That’s because your life and financial needs don’t stay the same forever.
Yes, you can have multiple life insurance policies with different beneficiaries. You can have multiple life insurance policies with different beneficiaries, as each life insurance policy is a separate contract. According to the Financial Consumer Agency of Canada in Canada.ca, in Life Insurance, if you name more than one beneficiary, different proportions of insurance benefits are assigned to each beneficiary.
This can actually work really well when you have different priorities:
The key is to keep everything clear and updated. So if your situation changes, update the beneficiary details so there’s no confusion later on. It also helps to keep a simple record of which decreasing life insurance policy goes to whom.
IBC Financial helps you in splitting a level cover wisely. This allows you to match payouts to specific needs, rather than relying on one policy to do it all.
Reasons for wanting to have more than one life insurance policy include multiple financial goals. Why someone would want to have more than one life insurance policy depends on budget and need for security. As per TD in CIC News, in the article Understanding Different Types of Insurance in Canada: A Guide for New Canadians, different types of insurance policies must be considered to make informed choices.
Some common reasons for multiple policies include:
You can absolutely apply to multiple insurance carriers at once. Applying to multiple insurance carriers includes an evaluation of medical information, finances, and other coverage. If you have two health insurance policies, your primary and secondary insurance work together, especially in the case of health insurance overview.
Here are some points to keep in mind:
This approach can save time and give you better options. But it’s important to stay realistic about how much coverage you’re asking for. An IBC Financial advisor helps you keep it reasonable. And applying to more than one company can be a smart move with our experts.
Reasons for getting more than one life insurance policy include extra support and flexibility. Reasons for getting more than one life insurance policy accommodate your life changes and financial needs. According to Erica Alini from GlobalNews.ca in the article More than half of Canadians with group life insurance have no other coverage: survey, if you have group benefits insurance, the coverage might fall short.
Thus, it is advisable to have an additional comprehensive policy. It helps cover your family expenses in case of unforeseen events like death.
Here’s how stacking policies can help you:
There is no limit to how many multi-life life insurance policies you can have. There is no limit to how many life insurance policies you can have, but there are practical considerations. According to Georgia Rose for Nerdwallet, in Can You Have More Than One Life Insurance Policy?, a Canadian insurer will usually cap your coverage based on income.
Insurers also want the total payout across all your policies to make sense for your situation. For instance:
IBC Financial states that technically, you can hold several multi-life life insurance policies. That too, from different insurers. However, the combined value has to look reasonable. Get in touch with our financial advisor to determine what works best for your financial needs.
