Can Term Insurance be Claimed from Two Companies?

Written by : Knowledge Centre Team

2025-11-03

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In India, an individual can claim multiple-term insurance policies to secure adequate coverage for their families.

Term insurance provides financial security without the primary earner, offering essential support to the family members. Responsibilities grow with the passage of time. Thus, to protect your life goals, you may need to review your term insurance plan from time to time. There may be a need to buy another term insurance plan to protect your goals.

A lot of people do inquire can we claim 2 term insurance from two companies? The answer is Yes! Insurance companies allow customers to buy multiple insurance plans depending on their requirements.

If you have two term life insurance plans and are here to find the answer, can I have multiple-term insurance? You are on the right page. Read this blog to understand the advantages and disadvantages of having multiple plans.

Key Takeaways

Can I buy multiple-term insurance? Yes, you can. There’s no legal restriction on holding more than one policy.
Multiple-term insurance policies give your family enhanced protection even in your absence.
While multiple insurance policies come with the major advantage of giving your family protection, they also come with the challenge of managing and paying different premium amounts.
Transparency is the key. Be honest with your insurers when making claims. This will help you avoid any complications later.
Make sure to keep all the relevant documents, like death certificate, policy documents, identification proof, and more, handy. This will save you time.

Advantages of Having Multiple Term Insurance Plans

A term insurance policy is a cost-effective way to provide financial protection to your family when you are not around anymore. Sometimes, a single-term plan may not help you meet all your needs. For adequate protection, you may add another term plan to your portfolio. However, having multiple-term life insurance plans may also have some disadvantages.

Having multiple-term plans has various advantages that are listed below:

The coverage needs to increase with increasing responsibilities: One term plan may not be sufficient. Growing responsibilities will demand a higher need for protection. The existing term insurance plan may not be sufficient for your increasing obligations.

For example, you had bought a term plan with ₹50 Lakh cover when you started earning. A few years later, you got married, and you added your spouse to the same policy. After a few years, you both become parents, and your responsibility increases. You feel that the same term insurance plan is not sufficient to act as a financial umbrella for your family if something happens to you. You buy a new plan for sufficient coverage.

So, having multiple-term insurance plans will fill the gap between your coverage needs and the increase in responsibilities.
Higher chance of successful claim settlement: While filing the proposal form for a term plan, you shouldn't hide anything as it might lead to rejection in the issuance, or it may create issues when the beneficiaries claim the benefits. However, the claim could be rejected by the insurance company due to any reason. If you have more than one term insurance plan, your family may get the benefit from the other insurance company.
Chance to enhance the term plan with riders: Riders are optional in-built features that a policyholder may add to their policy to enhance the coverage. Adding riders to the plan will increase the premium as it is enhancing your plan.

Let us consider an example to understand this. Suppose the term insurance plan that you have offers disability coverage but doesn't include critical illness coverage. Having critical illness coverage will be beneficial for you in the future. Buying a term plan with critical illness cover will help you financially. By having multiple-term plans, you have comprehensive protection.

Disadvantages of Having Multiple-Term Insurance Plans

However, having multiple-term life insurance plans may also have some disadvantages. Weighing the pros and cons before you buy two policies will help you understand your financial needs and the gaps in fulfilling them.

Listed below are a few limitations of buying multiple policies:

Have to pay more for multiple life insurance policies: You will have to pay a certain premium for every policy you buy. If you have 2 term insurance plans, you will pay for both plans. In the end, it may cost you more.
Managing multiple life insurance policies may be challenging: When you have multiple plans, you have to pay multiple premiums. That means remembering multiple premium payment dates. Sometimes, you may miss a payment date. This is an additional hassle that you will have to manage if you have more than one life insurance policy.

Conditions to Claim Multiple-term Insurance Policies

Life is quite unpredictable, making term insurance plans a necessity. When thinking about insurance, the first question that comes to mind is: Can I buy multiple-term insurance plans? Yes, absolutely! However, before claiming 2 term insurance policies, there are a few conditions and requirements that you must be aware of. Let’s take a look at them:

Be honest with your insurance companies and disclose all the information truthfully. This may increase your chances of approval and help expedite the claim process.

In the event of an unfortunate event like your demise, the nominee is responsible for filling out the form with all the relevant documents.

If there has been an accidental death, your nominee will need to file a police FIR.

Claim Disclosure Requirements

When applying for multiple insurance policies, people are usually reluctant to disclose their personal details to multiple insurers. However, this is not the right approach. If you are wondering, can we claim 2 term insurance from two companies without disclosing the relevant details, the answer is no. This might lead to the rejection of your claim or even the cancellation of the policy.

Be transparent with both your insurance companies and disclose all relevant information, such as the number of policies you currently have and the accurate sum insured. This will help the insurers assess the risk and make decisions accordingly.

Documentation Checklist

When making a claim, the insurer needs certain documents as evidence. Here’s a checklist of the necessary documents you need to keep handy:

Policy documents
Death certificate
Claim form
Doctor prescriptions
A copy of an FIR ( in case of an accidental death)
Identification proof

Did You Know?

For multiple fixed benefit policies, each insurer will pay claims independently based on the policy terms, regardless of other similar policy payments.

Source - IRDAI

Buy 1 Crore Term Insurance Plan

Buying a 1 crore term insurance plan is the best way to build an adequate financial corpus for your loved ones. Opting for a 1 crore (CR) coverage amount offers several advantages that are listed below:

Sufficient Financial Protection: A 1 crore term plan provides a substantial sum assured to safeguard your family's financial future in the event of untimely demise. This amount can cover various expenses, including outstanding debts, daily living expenses, children's education, and other financial obligations.
Cost-Effective Premiums: Compared to higher coverage options, a 1 crore term plan typically offers more affordable premiums. It makes term plans accessible to individuals with varying income levels and budgetary constraints.
Tailored to Individual Needs: A 1 crore term insurance plan can be customised to suit your specific requirements. You can adjust the policy features, term length, and additional riders according to your family's unique needs and circumstances.
Long-Term Financial Planning: This coverage amount aligns with prudent long-term financial planning, offering peace of mind and financial security for your family's future.

If you are wondering how many term insurance can I have, you can check the numerous plans available. Young Term Plan from Canara HSBC Life Insurance provides comprehensive protection for your life goals at an affordable premium.

Final Thoughts

Now that you have got an answer to your question: can I have multiple-term insurance? You must consider both pros and cons to make a mindful decision. Acquiring multiple-term insurance plans can offer flexibility to adjust to evolving life circumstances, such as increasing expenses, debts, or changing life goals. Additionally, the availability of built-in and optional riders can enhance the comprehensiveness of your coverage, provided the plan supports them. However, it's crucial to be mindful of the aggregate sum assured limitations, which may be influenced by your annual income. Before making a purchase, it's advisable to consult your insurer to ensure compliance with these restrictions.

By adopting a strategic approach to managing multiple-term plans, you can maximise the benefits while minimising potential complications in the event of a claim.

Glossary:

Optional Riders: These are additional features that can be added to an insurance policy to customise coverage according to specific needs or circumstances.
Disability Coverage: Disability coverage provides financial protection to individuals who cannot work due to a disability. It covers income replacement and sometimes additional benefits to support living expenses.
Critical Illness Coverage: The coverage offers a lump-sum payment upon the diagnosis of a predetermined serious illness outlined in the policy. This payment aids in covering medical expenses, loss of income, and other costs incurred due to the illness.

FAQs Related to Multiple-term Insurance

Yes, you can claim life insurance from two different companies. Each insurer will independently assess and process your claim based on your policy terms. While claiming the life insurance, you must provide the necessary documents and follow the claim procedures outlined by each company to expedite the process.

Yes, having multiple insurance policies can impact your premiums. While buying policies with the same insurer may lead to discounts, having multiple policies across different insurers could increase overall premiums compared to a single policy.

To initiate the claim process, you must contact each insurance company separately. Provide policy details and relevant information, following the specific procedures outlined in your policy documents. Also, you must stay proactive and communicate with insurers to ensure a smooth claims process.

Yes, informing all your insurance companies about your intention to make a claim is crucial. Notify each insurer separately and provide the relevant details to ensure smooth claim processing.

In India, you can have multiple-term insurance plans to establish financial security for your family. The number of policies you can choose depends on numerous factors like coverage needs, financial stability, health, age, etc.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.