Why Should I Have More Than One Insurance Policy?
Updated On Apr 26, 2021
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Health and life insurance policies are indispensable nowadays given the high costs of medical treatment and frequency of medical ailments that we suffer from. Most people prefer to have either one health or life insurance policy and they are not always aware of the benefits that can be availed by having more than one insurance policy. It is important for everyone to assess their financial requirements and consider a second insurance policy alongside a standing one. In this manner all of your risks are effectively covered and you can be sure of a well protected and stable financial future for yourself and your family members.
Why Should I Have More Than One Insurance Policy?
In this article we are going to look at some of the reasons on why it is important to have more than one insurance policy. The reasons are as follows -
1. Extra Protection
It is possible to have more than insurance policy and be secured against any financial or medical emergency that you might have to face. Having two insurance policies provides you extra protection. By subscribing to more than one insurance plan, you can avail an additional source of funds and benefits and it will be useful for fulfilling your major life goals and also in settling credit that you might owe elsewhere.
Also Read: Importance of Life Insurance in Women's Lives
2. Avoid Claim Rejection
Having more than one insurance policy protects you against claim rejection from insurance companies. Such an instance can occur due to multiple reasons and holding an extra health insurance ensures that in times of emergency you can depend on the other insurance company to receive your claim amount. It also ensures that your nominee, dependants or beneficiaries are well protected.
3. Better Claim Settlement Ratio
All insurance companies have a claim settlement ratio (CSR) that indicates their success in settling their policyholder’s claims and it is different for different companies. While buying any kind of insurance policy, you must take this aspect into consideration. Having more than one insurance policy ensures that you can hope to receive a claim more efficiently if one of the companies have a higher CSR than the other and conveniently use its payment and other beneficial services.
4. Financial Advantage With Multiple Options
People have different objectives in their lives and two separate insurance policies ensure that all of their aspirations are met and goals fulfilled. For example, one person might have a life insurance policy till the age of 65 years that will ensure their family’s financial protection, but they also have a pending loan payment.
In such a scenario, their insurance policy offering coverage till 65 years of age will not be useful and they would require a more immediate solution for the same. Having a different insurance policy that comes with an added loan facility will be financially advantageous to that person where they can repay their loan and continue to enjoy the other benefits that come with the plan.
Do Read: How Easy Is It to Buy Life Insurance?
Conclusion
You are now aware of the different benefits that you can avail by having more than one insurance policy. Buying multiple life insurance policies is thus a smart move to maximise your insurance cover and outweigh your difficulties. There is no restriction to the number of insurance policies that you can buy at a time, but you should be cautious that the information of your past policies are made available while applying for a new one.
