Can An Individual Buy Multiple Term Insurance Plans?

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Can An Individual Buy Multiple Term Insurance Plans?

Can An Individual Buy Multiple Term Insurance Plans?
  • 19th Jun 2019 |
  • 7,445

In order to meet your long-term financial goals and provide monetary protection to your loved ones, it is important to invest in a term insurance plan. Such a plan offers coverage against the unpredictable risks associated with life. In case of the death of a policyholder, the nominees will receive the sum assured as a death benefit. This lump sum will serve as financial protection for the family members of the deceased. However, term insurance does not offer any are no maturity benefits in case of survival of the policyholder.

Can you take more than one term insurance plan?

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.

Advantages of having more than one term insurance plan

You can avail of various benefits by holding multiple term insurance policies. Listed below are a few advantages of having more than one term insurance policy.

1. A higher probability of your claim being approved

One of the biggest term life insurance benefits while buying multiple policies is that the claim will be accepted by your insurance provider. When you buy insurance, you need to understand the claim settlement ratio. It is the ratio of the number of claims processed by the insurance provider to the number of claims received by the insurance company. If the claim settlement ratio is higher, the probability of the claim being entertained is also high. Hence, when you file a claim, the probability of it being accepted increases even when it is refused by another insurance company.

2. High scope of coverage

Another benefit of buying multiple term insurance policies is high coverage. Since you have more than one term plan, you can enjoy a significant coverage by an extended purview of insurance benefits. You also get to choose different family members as nominees for the coverage offered by different insurance companies.

3. High sum assured

With multiple term insurance policies, the sum assured will also be high. This means that you can your beneficiaries can avail of an assured death benefit from multiple sources.

The aforementioned points are a few important benefits of investing in multiple term insurance policies. Term insurance is a cost-effective way of providing for the financial security of your loved ones in your absence. If you are thinking of buying multiple plans, consider the coverage offered by them. Ensure that you make the right choice by comparing the plans and understanding the terms and conditions offered by various insurers. With more than one term plan, you can benefit from a higher coverage and sum assured for your loved ones. If you can afford to pay multiple premiums, you should opt for multiple term plans.

- A Consumer Education Initiative series by Kotak Life

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