Today, in times of uncertainties, buying a life insurance policy is no longer an option. It is a mandatory requirement for all. While there are many types of life insurance in the market, term insurance remains the most popular as it is a pure protection policy and has the most affordable premium.
As the name suggests, term insurance provides coverage for a specific duration. In the event of your unfortunate demise during the policy period, the insurer will pay the sum assured to the family. However, the question is, will the sum assured be enough for your family to take care of their everyday expenses after you are gone? Or do you need more than one term insurance?
Firstly, you can have more than one term insurance, and you can buy it from two different companies of your choice. Having more than one term insurance will give your family an additional financial cushion if something unfortunate happens. Let us know more about why it is a smart idea to have more than one insurance term plan.
Your financial goals may vary at different stages of your life. When you are young, say in your 20s, the focus will be on building a family. Later, as you grow old and reach the 40s, your focus will be on retirement planning, accumulating corpus for children’s education/marriage, etc.
Thus, by purchasing multiple term insurance based on the status of your current financial liabilities, you can cover your needs. Also, having two different term insurance will have different maturity terms, meaning you will have coverage for a longer period.
One of the obvious benefits of having multiple term insurance cover is that you get higher coverage. Since you have more than one term plan, your family can have additional financial security and extended insurance benefits of two policies. In addition, by buying two term insurance from two different insurers, you can appoint different family members as nominees.
Buying multiple term insurance from different insurers adds to a higher coverage at a much affordable premium than having a single plan. Buying two term plans from two different companies is a wise idea if the coverage amount is high. However, while buying the second term plan, you must inform the new insurer about your existing plan.
Minimises the risk of claim rejection or delay in claim settlement
When you have more than one term insurance from two different insurance companies, the claim rejection risk or delay in claim settlement process is spread across different insurers. Although you may provide accurate details to the insurer at the time of buying the policy, you may unintentionally leave some critical information. This could lead to claim rejection or delay in the settlement process.
But when you have more than one term insurance from two different insurance companies, the risk of losing cover is low. Even if one insurer rejects the claim, you can get your claim approved by the second one.
When you buy multiple term insurance from two different companies, you can enjoy the benefits of different riders. You can enhance the scope of your policy with specific riders that either of the insurer offers. Thus, you can enjoy wider coverage, and you have a wider bouquet of benefits to choose from!
Thus, by buying two term insurance from different insurance companies, you can enjoy the above benefits.