Can I Buy Multiple Term Insurance Policy?
Updated On Apr 15, 2022
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Many people have considered investing in multiple term insurance plans. You need to consider various factors when choosing more than one term insurance plan. You can take more than one plan but you need to know the terms and conditions of the plan very clearly. People prefer to opt for a term insurance plan because it offers economical rates of premium.
The Benefits of Buying Two Term Insurance Policies
Although term insurance is one of the most reasonable investments with a sizable cover, just one term plan might not be adequate to fulfil all your financial requirements. To prevent a situation where the coverage you have opted for is inadequate, you can invest in two term insurance policies. Here are the benefits of investing in more than one term insurance:
- Additional Responsibilities at Different Stages in Life: Term insurance provides coverage for only a specified duration. However, as you grow older, you have additional responsibilities as you cross different milestones in life. These added responsibilities need additional cover. To ensure wholesome protection to address the increasing responsibilities in life, you should invest in more than one term plan.
- Human Life Value: When buying life insurance, the human life value calculated represents the amount of money an individual is likely to earn through their course of life. When you invest in more than one life insurance policy, the policyholder can ensure that their family can get the combined term plan benefits and the human life value is provided even after the breadwinner’s demise.
- Enhancing with Riders: Riders can help strengthen an existing cover at a nominal additional cost. When you invest in more than one term insurance you can opt for different rider options for comprehensive protection. As every insurance provider offers different rider options, you can get the term insurance benefits of different policies with multiple add-ons.
- Increase your chances of successful claim settlement: With two term insurance policies, you double your chances of getting a term insurance payout. If the claim is rejected by one insurance policy for some reason, the family can fall back on the second policy for the life cover benefit.
To Conclude
It is possible to enhance your financial protection with two term life insurance policies. You can ensure coverage for the changing insurance needs at different stages and increase the chances of a successful claim settlement. However, make sure that you disclose all the information of the existing policy before buying the second one.
Also read- What Is A General Provident Fund And How Does It Work
