Why Having Multiple Life Covers Is A Wise Decision?

You are planning to buy a life insurance plan and also decided the amount of sum insured that you require, but confused whether you should go for one term insurance plan with a big life cover or break down it in multiple policies. Here are few pointers to why you should have multiple life covers.

It is advisable that you buy multiple policies. There are several reasons for buying multiple life insurance policies.

Hedge against claim rejection: Firstly, it is a hedge against claim rejection. If you have disclosed all information about your health and undergone the required check-ups, most probably, the insurer will not reject your claim, but if anyhow what will happen if your claim gets rejected and your dependents does not get claim amount. In such situation multiple policies are very beneficial as if the claim is rejected by one insurer and accepted by another, your dependents will get at least some amount.

Also, in such a situation, the family can write to the company which has rejected the claim, which will force it to relook at the claim.

Diversification: Having multiple insurance policies help you to diversify across insurance companies. It is advisable to buy life insurance policy from an insurer having good claim settlement ratio as there will be lesser chances of claim rejection.

Different maturities: You can buy life insurance policies with different maturities. Your sum insured is decided taking into account your future liabilities. You should buy multiple insurance policies in such a manner that their maturity matches with your financial goal. As your one financial goal is achieved one life insurance policy should come to an end. In this way you will not need to pay unnecessary premiums.

Flexibility: It is prudent that you align your life insurance policies with life stages and have two-three policies of varying terms and covers as this will give you flexibility to continue or discontinue policies on the basis of your requirements.

However, do remember it is mandatory to declare your existing insurance plans while buying a new one. Buy your insurance plan with PolicyMantra where you can compare different insurance quotes and buy suitable for you.