Can You Have Multiple Life Insurance Policies in Canada?

Published on: October 3, 2024 | Reviewed by Catherine Malone

Yes, you can hold more than one – several, even – life insurance policies. You can also have different types of life insurance.

Depending on your life circumstances, you may want to have more than one life insurance policy to cover all your needs. Here’s what you need to know about buying  multiple policies.

Can you have individual and group life insurance at the same time?

Yes, you can have your own life insurance policy while maintaining the one you have through your group benefits at work. Many people choose to top up their group life insurance coverage with their own individual policy.

It’s also important to remember that life insurance through your group benefits is active only while you’re still working at that employer.  If you ever leave your job or retire, it helps to have your own life insurance policy to help ensure  your beneficiaries and loved ones remain financially protected.

If you’re in the process of leaving a job with a group benefits plan – whether it’s with Sun Life or any other Canadian insurer – then you may be eligible to replace your group life insurance with your own policy from our Sun Life Choices plan.

Get a quote with Sun Life Choices

Estate planning

Life insurance can play a huge role in planning your estate. After you die, much of what you own will go to your estate. First claim on your estate goes to taxes, to those you owed money to when you died, and to after-death expenses (like funeral costs). Whatever remains goes to those you leave behind. It’s important to have a will to ensure your assets are distributed according to your wishes.

Some of what you own can pass to others without going through your estate. One example is a life insurance policy with a named beneficiary (like your spouse or common-law partner or children). The money from a life insurance policy – called the death benefit – passes directly to your beneficiary(s) without going through your estate.

You can have multiple life insurance policies to protect various beneficiaries. For instance, you could have one policy where the death benefit goes to your family. Meanwhile, the death benefit from another policy could go to a charity or organization of your choosing. And another policy could be used to protect your business.

Keep in mind, when it comes to estate planning, there are various types of life insurance that can be used in different ways. Connect with an advisor for more detailed information.