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Can you buy multiple life insurance policies?

If one had a whole life insurance policy valued at $1M, and through a life settlement company sold it for $455K; could you essentially use those same funds to purchase another life insurance such as a universal life insurance policy for $1M?

Public Comments

1. Yes. You can have as many life insurance policies as you want (or, more correctly, for as much as the companies are willing to insurance you for).
2. You may have as many as you are willing to pay for. It just gives your beneficiary more incentive to let something happen to you.
3. Well, you're not going to be able to sell it for that much, unless the CASH VALUE is that much. Face value and cash value are hugely difference. But yes, you can have more than one life insurance policy.
4. You can have more than one life insurance policy.
5. You can buy multiple life insurance policies. You can use the funds from selling one policy to buy another. You cannot use all the funds from selling a whole life insurance policy valued at $1M, and no other funds, to buy a universal policy for $1M. The price of a whole life policy is not the same as the price of a universal policy of the same size.
6. A life settlement company isn't going to give you that much for a policy unless you're terminally ill and/or it has that much cash value. AND, if you're terminal then you're not buying another plan.