A life insurance policy is a contract between the insurer and the insured. The insurer provides death benefits to an insured person in exchange for a premium. The life insurance policy can be taken out by individuals as well as by groups. The purpose of a life insurance policy is to provide financial protection for your family if something happens to you.
Life insurance is a necessity for many people. It can provide financial security and peace of mind, in case of an emergency. But what if you need two life insurance policies? This article will explore why you may need two life insurance policies, as well as the advantages and disadvantages of both. We'll also offer some tips on how to choose which policy is best for you.
Why Need Two Life Insurance Policies?
There are many situations in which it makes sense to purchase two life insurance policies. For instance, if your employer offers group coverage but they don't cover the whole amount, you may want to get a second policy on your own that covers the difference. However, some people may want to have two life policies for additional coverage or peace of mind.
So, it is advisable to have more than one term life insurance plan to take care of the additional needs which come with increased lifestyle needs and added responsibilities. A second life insurance policy can help your family with funeral expenses, medical bills, or mortgage payments if you are no longer around.
Second life insurance policies are usually less expensive than the first because they do not cover any pre-existing conditions that were already taken care of with the first. It is a worthwhile option to consider a second insurance plan. If you buy a second insurance plan, the information about the first insurance plan should be shared with the second insurer.
Below are the reasons to buy two or Multiple Life Insurance Policies
- Protects against Claim Rejection: If you have more than one life insurance policy, you can submit your insurance claim even if one company rejects it as there's still a chance that another provider might accept it. Also, with multiple life insurance policies, your dependents or beneficiaries will have the option to get the claim amount after your death. While buying multiple insurance policies, it's important to consider the insurance company's history of settling claims so, there's no loss in paying the claim amount.
- Protects Against Multiple Needs: If you are worried about leaving your family after your death, life insurance can provide families that extra financial security. You can either collect a lump sum at the time of death or select to have the funds paid out periodically. You can also opt for multiple policies with different maturity periods. This will help you deal with the changing needs at various stages of life. The insurance cover is decided based on our current liabilities which keep on changing with time. Thus, having multiple policies of different coverage as this way you will have the freedom to continue or discontinue your policy basis your needs.
- Cost effective: Instead of buying one life insurance policy with a higher sum assured, it is a good idea to buy more than one plan that adds up to a large sum assured.
What are the Benefits of Having 2 or Multiple Life Insurance Policies?
Some people have a life insurance policy through their employer, while others may have one on their own. The question is, do you need to have more than one? It might seem like an unnecessary expense to pay for two life insurance policies but some benefits come with having more than one.
Here are the main benefits of having 2 or multiple life insurance policies.
- Additional Coverage: The first life insurance plan is a basic life insurance plan, while the second should be designed to provide additional coverage for dependents and loved ones.
- Save Money: Having two life insurance policies is the ability to save money by comparing the prices between them and deciding which one is cheaper.
- Flexibility in Choosing a Plan: You’ll also be able to choose between term life insurance and whole life insurance depending on your needs.
- Death Benefits: The Nominee can avail of death benefits from more than one policy.
- Avoidance of Claim Rejection: You will have less hassle when you use 2 or more insurance companies because your claim may be rejected by one company, but accepted by another. The chances are high that your claim will be settled.
- Covers your Future Needs: Multiple insurance plans are designed to help you plan for the milestones in your life. If you buy 2 life insurance policies based on the needs of your family. You can get extra insurance protection for child education, marriage, buying a house, etc.
Things to Consider While Having Multiple Life Insurance Policies
It is not uncommon for people to have more than one life insurance policy. This is because there are different types of life insurance policies that are designed for different purposes.
Some people might want to buy a whole life insurance policy, which will pay out a lump sum to the beneficiary when the insured dies. Others might want an endowment or term life insurance policy, which will pay out a set amount of money over time.
It is important that you understand the benefits and drawbacks of each type of life insurance policy before making your decision. Here are the things while having 2 or multiple life insurance policies you should consider to make a better decision.
- The cost of your policy will depend on many factors such as age, health, and location.
- You have to decide how much coverage you want because it will affect both the cost and what type of policies are available to you.
- Whether or not it's guaranteed renewable. This means that if your health changes, you can still renew your policy without having to go through underwriting again.
- How much coverage do I need? You need to decide how much insurance you need by calculating your health expenses, deductibles, and healthcare needs.
- What do I get with my policy? The different types of policies that are available to you will depend on the cost of your policy.
Are Multiple Life Insurance Policies Right For You?
Multiple life insurance policies are right for you? It always depends on your circumstances and needs. If you currently have a group life insurance policy through your employer, you may want more coverage. Then you should consider another one to get more coverage or maybe you already had a personal life insurance policy, but your circumstances have changed and you’ve realized you need more coverage now. Then also you should opt for another one.
The decision on buying two or more life insurance policies based on some factors such as income, health, dependents, and occupation will also determine if you need more coverage from multiple policies. There are no financial risks with having multiple policies but you need to make sure you can afford to pay all the premiums on time to avoid claim rejection.
The best way to get multiple life insurance policies is by comparing the multiple policies with different insurers at PolicyBachat. We are online insurance web aggregators ready to help you through your application process and we will help you to compare the best life insurance policies to get the best policies.
How to Compare Multiple Life Insurance Policies
With the advent of technology, it is now easier than ever to compare multiple life insurance quotes online from different providers. But before you consider getting a quote, be sure to do your research and understand what each provider offers.
The best way to compare multiple life insurance policies is to use an online life insurance premium calculator. Many free calculators can help you compare the different policies and find the best one for your needs. PolicyBachat is an online insurance web aggregator this will help you to compare the different policies.
Online life insurance quote comparison in India has been made easier for people with the help of digital technology. It's important to note that it is not just about getting a cheap quote but also about getting the best one from a range of insurers. Below are the steps to compare life insurance quotes for multiple insurers.
- Visit the Policybachat Website and select the ‘Life’ tab.
- Enter your Name, Date of Birth, and Mobile Number.
- Click on the ‘View Plans’ button.
- Just Answer 5 Simple Questions.
- Select your ‘Gender’.
- Select ‘YES’ or ‘No’ if you have Smoked or Chewed Tobacco in the last 12 months.
- Select your ‘Annual Income’.
- Select your ‘Education Qualification’.
- Choose your ‘Occupation Type’.
- Enter your ‘Email Address’.
- Then click on ‘Start Saving Money’.
- Premium quotes of top life insurance plans will be displayed as per data entered by you
- Compare them and pick the best one as per your requirement.
Thus, taking two or multiple life insurance policies might be beneficial in many ways. As families grow and financial needs increase, having multiple life insurance policies might be needed to fulfill all safety needs. It is also important to note that if one claim gets rejected, the policyholder can rely on another one.
Can I Have 2 Life Insurance Policies?
Yes, you can have two life insurance policies. You can take out a life insurance policy with a different company from the one you are with. The secondary policy will be for an increase in coverage or just to provide backup in case your primary insurance provider fails to settle the claim.
Can You Get Multiple Policies from the Same Life Insurance Company?
In India, it is possible to get multiple life insurance policies from the same company. This is because there are no restrictions on the number of policies one can have. However, most people prefer having a single policy because they find it easier to deal with one company.
What are the Alternatives to Buying Multiple Life Insurance Policies?
The alternatives to buying multiple life insurance policies are as follows:
- Consider Life insurance riders to enhance the coverage
- Increase your death benefit
Is There a Limit to How Many Life Insurance Policies You Can Have?
No, there is no limit to how many life insurance policies you can have. You can have as many life insurance policies as you like but, most times, your coverage won't exceed 15-20 times your annual income.