You can have more than one life insurance policy at once. Sometimes called “laddering,” carrying multiple policies with different coverage may support your financial planning.1 Whether you’re wondering something specific, like “How much do funerals cost?” or generally considering long-term financial goals, carrying multiple life insurance policies may make sense. Here, we explore different types of life insurance and when it may make sense to carry multiple life insurance policies.
How many life insurance policies can you have?
An individual can have multiple life insurance policies from the same or different insurance companies. However, life insurance is primarily designed to replace your income when you die, not significantly enrich your beneficiaries, so insurers may limit the total amount of coverage you can buy to 20 to 30 times your annual income.1 If you’ve reached your insurability limit, you might need to justify to the insurer why you need more coverage. That said, if you have financial needs both now and in the future, it could be wise to carry multiple policies to address different coverage goals.
Types of life insurance
Different types of life insurance policies have varying features and benefits, and if you’re considering multiple, it may make sense to have different types:
- Term life insurance: Temporary insurance that typically lasts for between 10 to 30 years, so long as you keep paying premiums. The policy pays a death benefit if you pass away while the coverage is active.2 Term life insurance is usually the preferred type for insurance laddering because it tends to be more affordable than permanent life insurance and allows you to cover different time periods of your life.1
- Whole life insurance: Permanent life insurance that offers lifelong coverage and may have a cash value component that gets invested and increases the policy value over time. You can typically withdraw money from the cash value, borrow money against its value, or set it up to pay a life insurance annuity, a living benefit to beneficiaries that begins distributing the death benefit while you’re still alive.2
- Universal life insurance: Permanent life insurance that allows you to adjust your premiums and death benefit as your circumstances change. These policies also have cash value.1
- Final expense insurance: Small permanent life insurance policies that are designed to help your family cover end-of-life expenses, like a funeral, burial costs, and outstanding medical bills.1
While life insurance is often offered as a benefit by employers, you can also purchase individual private insurance. By shopping on your own, you can create a coverage plan that is unique to you.
Why would I have multiple life insurance policies?
There are several scenarios in which you might consider getting multiple life insurance policies:
- Your employer-sponsored plan isn’t enough: If your employer offers group life insurance, but the coverage falls short of what your surviving family would need, purchasing an additional individual life insurance plan can provide greater financial protection to cover funeral expenses or unforeseen medical bills. Make sure to check your company policy’s rules and regulations to ensure there are not restrictions against pursuing your own policy.
- You have a large family: If you have several dependents, having multiple life insurance policies can increase your death benefit, providing financial support for each of your dependents after you’re gone.
- You plan to retire soon: You typically can’t keep employer-sponsored life insurance benefits when you leave the company.3 As such, having your own policy will ensure you still have coverage even when you retire or leave the company for another reason.
- You have significant debts: Whether you still owe a lot on a mortgage, have significant student debt, or other personal debts, providing a larger death benefit to your family will help them pay off your debts.
- You own a small business: Death benefits may also be used to pay business loans or support operational costs if you die unexpectedly, which can help ensure stability for the business.1
- You want to leave an inheritance: One of the main advantages of getting multiple life insurance policies is that it will raise the death benefit your family receives. After covering end-of-life expenses and any remaining debts, those benefits could serve as an inheritance for your children.
The bottom line
While there are often insurability limits, you usually can get more than one life insurance policy. Whether your employer-sponsored plan doesn’t provide enough coverage or you want to provide for a large family after you’re gone, there are several reasons why multiple policies may make sense for you.
Sources:
1 Nerdwallet – Can You Have More Than One Life Insurance Policy? Updated May 16, 2025. https://www.nerdwallet.com/article/insurance/can-you-have-more-than-one-life-insurance-policy. Accessed July 25, 2025.
2 Investopedia – Do You Need Life Insurance in Retirement? Updated August 16, 2024. https://www.investopedia.com/articles/personal-finance/010716/do-you-need-life-insurance-after-you-retire.asp. Accessed July 25, 2025.
3 Bankrate – What happens to your life insurance when you leave a job? Updated February 17, 2025. https://www.bankrate.com/insurance/life-insurance/lose-life-insurance-after-quitting-job/. Accessed July 25, 2025.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Aflac coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, Aflac coverage is underwritten by American Family Life Assurance Company of New York.
Aflac life plans – A68000 series: Term Life Policies: In Arkansas, Idaho, Oklahoma, Oregon, Texas, Pennsylvania & Virginia, Policies: ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68200, A68300 & A68400. In New York, Policies NY68200, NY68300 and NY68400. Whole Life Policies: In Arkansas, Idaho, Oklahoma, Oregon, Texas, Pennsylvania & Virginia, Policies: ICC1368100. In Delaware, Policy A68100. In New York, Policy NYR68100. B60000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Not available in Delaware. Q60000 series/Whole: In Arkansas & Delaware, Policy Q60100M. In Idaho, Policy Q60100MID. In Oklahoma, Policy Q60100MOK. Not available in Virginia. Q60000 series/Term: In Delaware, Policies Q60200CM. In Arkansas, Idaho, Oklahoma, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C. Not available in Virginia.
Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY, VA or VT. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations, and exclusions.
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Aflac New York | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211
