Can a Life Insurance Beneficiary Claim Multiple Policies?
Can a life insurance beneficiary claim multiple policies? Learn the rules, eligibility, and tips to manage claims effectively for better financial protection.
Can I Purchase Two or More Life Insurance Policies?
Yes. Currently, Hong Kong law does not limit the number of insurance policies citizens can purchase. In other words, whether it is Life insurance , Health insurance , Critical illness insurance , Accident insurance , or property insurance, policyholders can freely choose to buy more than one policy for the same item and risk.
Therefore, policyholders can legally choose to purchase more than one life insurance policy.
As for whether a policyholder can purchase more than one life insurance policy from the same insurance company, it depends on the individual company’s policies and regulations. For Bowtie, we accept customers purchasing two or more Bowtie Term Life policies for the same insured person, but we have the following limits on the total life insurance coverage:
| Customer Category/Age | Life Insurance Coverage Limit (HK$) |
| Existing customers* | 20,000,000 |
| 18-45 years old | 8,000,000 |
| 46-55 years old | 4,000,000 |
| 56-60 years old | 3,500,000 |
| 61-65 years old | 1,000,000 |
Reasons for Needing More Than One Life Insurance Policy
Why would someone choose to purchase more than one life insurance policy? There are mainly three key reasons:
Desire for Greater Life Insurance Coverage
Policyholders may feel that their existing life insurance policy no longer provides sufficient coverage, so they want to buy another one to enhance their protection. In fact, purchasing a new policy might be simpler and more convenient than applying to increase the coverage on an existing policy.
Existing Policy is Whole Life Insurance
If the policyholder purchased Whole life insurance (i.e., savings-type life insurance) earlier, the coverage amount provided by this type of policy is often limited compared to term life insurance without savings components (at the same premium level). Therefore, many people who already hold savings-type life insurance policies choose to add a term life insurance policy to increase their coverage and meet current protection needs.
Meeting Wealth Inheritance Needs
In addition to providing death benefits, life insurance can serve as a tool for Wealth inheritance and financial planning. Savings-type life insurance policies can accumulate dividends over time, allowing the policyholder to withdraw the cash value when needed or upon surrender. Furthermore, the payout from a life insurance policy upon the insured’s death can be passed on to beneficiaries or as part of an estate.
For example, a life insurance policy with grandparents as the insured can later provide a sum of money for grandchildren in various forms, such as for buying a home, starting a business, or further education. Whether the life insurance policy includes savings components or not, purchasing multiple policies can help policyholders achieve different wealth inheritance or financial planning goals.
Can the Beneficiary Claim Two or More Life Insurance Policies if the Insured Passes Away?
Yes. Hong Kong law stipulates that if the policyholder of a life insurance policy has not engaged in fraudulent or misleading behavior, the insurance company is responsible for paying the full sum assured upon the insured’s death, even if multiple policies are purchased for the same person without disclosure to the insurer.
Bowtie Term Life: Option for Increased Coverage
Regardless of the reason mentioned above, if you wish to increase your life insurance coverage, consider Bowtie Term Life. This product provides a lump-sum compensation to the beneficiary upon the insured’s death, with features including:
- Pure protection, with no savings component
- Under the same premium, the coverage is 40 times higher than typical savings life insurance products*
- For every HK$1 million in coverage, the monthly premium is as low as HK$38
- *Based on the standard premium calculation for a 35-year-old non-smoking female insuring a $1 million coverage; Term Life Insurance: Data as of July 1, 2020, for standard premiums of term life insurance (20-year coverage period) in the market.
