Should I Buy a Second Life Insurance Policy?

Do you possess a life insurance policy, but think it is not enough for you and your family? Are you considering the purchase of a second life insurance policy? If so, have found the right place to be. If you have various financial objectives set for the coming years, it is advisable to go for a second life insurance policy. As far as the benefits are concerned, you will get many. Let us discuss more in detail.

Why Should You Buy a Second Life Insurance Policy?

If you are having second thoughts about buying a second life insurance policy, here are a few reasons why you should keep your hesitation behind and go ahead to buy a new or second life insurance policy:

1. Increased Financial Security

While a specific life insurance policy with a certain sum assured amount may seem enough to you in the initial period. However, always keep in mind that the increasing expenses may become overwhelming for you within no time. With a specific, limited sum assured amount, you may not be able to provide your family with all the financial stability you want. So, go ahead and buy a second life insurance policy so that your family gets the much-desired enhanced financial security and never runs short of funds. 

2. Freedom to Fulfil Increasing Financial Goals 

With the passage of time, expenses increase and so do financial goals. The same leads to the need for improved coverage. It is advisable to buy a second life insurance policy if you are in a stage of life where your financial goals are growing. It is because you will be able to fulfill them only if you have a vast coverage to support you. 

3. Separate Goals, Separate Policies

While it may come across as that simple, remember that you may not be able to meet your separate life goals with a single policy. You may think that your life insurance policy will help you attain your separate goals in life, but in reality, you will find it extremely difficult to accomplish two different goals from the same policy. Therefore, it is advisable to buy separate policies for separate goals.

4. Capital Growth

Life insurance policies not only provide the ideal insurance cover, but also some major investments. You can consider buying a ULIP or term insurance as your second life insurance plan to complement your first life insurance policy to attain some massive growth in your capital. 

5. Financial Stability Even If Your Claim is Rejected

Keep in mind that even if your claim for a life insurance policy is rejected, your second life insurance would save you. Your second life insurance policy will help you in securing your financial goals and serving as an effective investment vehicle. 

Buying a second life insurance policy may seem unnecessary, but it will definitely help you fulfill all your financial goals when you want them and as you want them. What’s best is that multiple policies will help you save tax under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

Must Read: Why is Life Insurance Always a Smart Decision?

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.