Does it make sense for husband and wife to have their life insurance from different companies?

Question

My question follows from the view "Don't put all your eggs in basket".

Answer 1

Only if it makes sense to do so.  If you're buying a term policy you have no eggs to worry about (since there is no cash value), but it doesn't make sense to pay much more to have your insurance at the same company.

http://www.InsurancePickle.com/life-insu...

Just go the most competitive route and take your trusted advisor's/broker's advice.

Answer 2

It makes sense when the husband can get the best rates from one company and the wife can get the best from another.  This is can be especially true if you have different health conditions and histories.  One company may have the best type 2 diabetes rates while another may have more liberal height and weight requirements.  Also some companies are more competitive for females and others for males.  

My wife and I bought term policies at the same time from 2 equally highly rated companies.  My company was not in the top 3 for her rate quotes and her company was not in the top 3 for my rate quotes.  

Answer 3

Sure...if it still meets your needs and goals.  It's perfectly logical for an individual to have policies with numerous companies if each company is helping them satisfy a different financial need or goal.  The only important thing is that each spouse (and secondary beneficiaries) know how to access the policy if need be.  Maybe get a safe deposit box to keep the policies in so you each always know where to find it in case of one of your deaths.

Often times it's a bad idea to cancel your existing insurance and purchase new insurance.  If you ever consider doing so, make sure to go through underwriting and get a final premium offer from the new company before canceling or 1035 exchanging the old policy.

Answer 4

It doesn't matter.  As long as the companies are both A rated, admitted carriers in your state, it completely doesn't matter AT ALL if they're with the same company or not.  There's no advantage, or disadvantage, either way.