Can Multiple Term Plans be Claimed from Two Companies?

The coverage needs 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 Rs. 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 offer disability cover but doesn't include critical illness coverage. You think having critical illness coverage will be beneficial for you in the future. Buying a term plan with critical illness cover will help you financially. And by having multiple term plans, you have comprehensive protection.

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 the 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, it may happen that you will miss a payment date. This is an additional hassle that you will have to manage if you have more than one life insurance policy.