Is It Advisable To Have Multiple Life Insurance Policies

2024-08-02

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Life is all about experiencing new things in multiple ways. Having many different experiences is something that makes our life worthwhile. Thus, we must try multiple things to make our life more interesting and intriguing. Similarly, when it comes into buying insurance, we can try multiple insurance policies as per our investment and financial goals. In fact, there's nothing wrong in having more than one insurance policy. For many, one insurance policy is more than enough. But for some, too many policies make much more sense. Thus, it's a wise decision to have multiple policies if done for the right reasons.

Mostly people have multiple life insurance policies nowadays; one is offered by their company and the other is their own policy. It is legal to have more than one insurance policy depending upon your needs because some buyers may just need a single life insurance coverage while some need multiple policies depending on different goals. Following are the reasons that shows why is it a good idea to have multiple life insurance policies, have a look -

Shield Against Claim Rejection- With multiple insurance policies, you have a benefit of asking for your claim even if it is rejected by one insurance company as it might get accepted by other. Also, with multiple life insurance portfolios your dependents or beneficiaries will have an option to get the claim amount after your death. While buying multiple insurance policies, you must check across insurance companies regarding their claim settlement ratio. Though some companies might charge a little more than other companies, but there's no loss in paying extra for the one with good claim settlement ratio.
Multiple policies with different maturity period-Rather than buying one 35-year old insurance policy, you can opt for multiple policies with different maturity period. This will help you deal with the changing needs at various stages of life. The insurance cover is decided on the basis of our current liabilities which keeps on changing with time. Thus, having multiple policies of different coverage as this way you will have the freedom to continue or discontinue your policy basis your needs.
Cost effective- Instead of buying one insurance policy with higher sum assured, it is good to buy more than one plan that adds up to big coverage.

Benefits of having multiple life insurance plans

Read on to know why it's good to buy multiple life insurance policies -

Different policies for different needs-Each policy under life insurance is based on specific needs. Buying multiple insurance becomes more apt in case of life insurance as it offers different insurance policies basis your needs. If you are looking for an investment cum insurance plan, then ULIP is the perfect bet for you as it helps in generating returns. Also, you can opt for term insurance plan as it ensures the safety of your family's future. Moreover, there's retirement plan that will help you build up a retirement corpus. Thus, having a great combination of different plans would help you plan a proper goal-centric planning.
Different policies for different needs-Each policy under life insurance is based on specific needs. Buying multiple insurance becomes more apt in case of life insurance as it offers different insurance policies basis your needs. If you are looking for an investment cum insurance plan, then ULIP is the perfect bet for you as it helps in generating returns. Also, you can opt for term insurance plan as it ensures the safety of your family's future. Moreover, there's retirement plan that will help you build up a retirement corpus. Thus, having a great combination of different plans would help you plan a proper goal-centric planning.
Healthy mix of premium, coverage aligned with your financial goals-An insurance policy with adequate coverage will compensate for the loss in case of the death of the policyholder. In addition to this, lower premium rates and financial requirements need to be considered at the same time. Though, a term insurance policy provides good coverage at affordable rates but it does not offer retirement corpus. Also, it does not meet your investment goals, thus, for this case, a child plan, pension plan or ULIP is needed so as to fulfill your insurance requirements.

On the whole, one must not hesitate from investing in more than one insurance plan as there's no harm in opting different life insurance policies. Besides, if you are planning to invest in a term insurance plan online, then choose to go with Canara HSBC Life Insurance iSelect Term plan as we offer adequate financial coverage at lower premium rates; also we offer life cover along with accidental death benefits.

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