How Many Term Insurance Can I Buy In India

A term life insurance is a protection you can get, not only for yourself but also to ensure that your family is taken care of. Even as you begin working at your first job, it is imperative that you design your life goals in such a manner that you are able to set aside certain funds to meet your life goals of caring for your family. A term plan may also serve as an investment because you also have the option of receiving all the premiums paid towards the policy once its term expires depending on the variant chosen by you. You can buy term insurance and customize it to include a cover for unforeseen eventualities such as disability and critical illnesses, according to your requirements, thereby ensuring that your financial losses are minimal in case you contract any critical illnesses or suffer from disability.

A term life insurance plan offers you adequate coverage at affordable premiums, and you can avail protection from critical illnesses covered within the plan as well. You can ensure increased protection by opting for multiple add-on covers such as Accidental Death Benefit, Accidental Total Permanent Disability Benefit, and even Waiver of Premium Benefit, which can prove especially useful at times of financial difficulties.

Even though one term life insurance policy offers a plethora of benefits, it is advisable to opt for two or more because your term insurance claim can be rejected in some cases. If you have more than one term policy, the nominee would not lose the total sum assured even if one claim is rejected. There is a chance that another insurer will accept it. While getting more than one term insurance will help reduce the risk of claim rejection, it is also important to be aware of the common causes of rejection.

Can I Take 2 Term Insurance Policies And What Are The Benefits?

While term insurance is comparatively cheaper than other life insurance products, its benefits may not prove adequate to your requirements. Thus, in order to avoid a situation where your need for coverage increases, it is best to have bought two or more term insurance plans well in advance.

If you have ever wondered, "Can I take 2 term insurance policies?" The answer is – Yes, you can! Read on to learn about why you should.

1. Increase in Responsibilities as you Age

When you buy term insurance, you can decide on its maturity period after which it no longer covers you. As you grow older and your responsibilities increase in line with your life stages, you will require more coverage thereby prompting the need for additional term policies. Thus, you should consider opting for two or more term insurance plans as your needs grow and your requirement for coverage increases.

2. To Ensure Continued Human Life Value (HLV)

The HLV is a figure that denotes the amount an individual is likely to earn as income over the remaining course of their life, after they have bought a term insurance policy. With multiple term insurance policies, a policyholder essentially ensures that their beneficiaries can access the benefits of their HLV even if they are no longer around.

3. Increased Number of Riders

Riders are add-ons you can get with your term insurance plan by paying nominal extra cost. By investing across multiple term insurance plans, you can ensure that you get benefits from across different riders. Not all insurers offer the same riders, so by investing across different plans you can easily gain the benefit of multiple riders.

3. Steps to Buy or Claim Multiple Term Insurance Policies

The steps for buying or claiming one or multiple term insurance policies remain the same, as it would be if you were buying or raising claims on just one term insurance policy. However, as mentioned earlier, it is imperative for you to disclose to your insurer details of all the term insurance policies you have invested in when you buy term insurance.

Conclusion

It is always better to have multiple term insurance plans so that your beneficiary is well equipped to meet their different life goals at different stages of their lives. However, in the interest of complete transparency and to ensure that your beneficiary’s claims are not later rejected, you need to inform the insurer about the different term policies that you have applied for.

Also Read: Which Is The Best Term Insurance Plan

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