Yes, it is possible to have 2 life insurance policies at the same time as long as they are not with the same company. You do not have to cancel one policy to take out another. You can even have more than two policies. If you are a high net worth individual, you may have more than 2 policies.
If you already have a life insurance policy, you may want to check your policy to make sure that it allows you to have multiple policies. Some companies will only allow you to have one policy with them.