Why have a second life insurance policy?
For many of us one insurance policy may seem sufficient to tackle any curve-balls the future might throw our way. But there are others who understand that having more than one life insurance policy gives you a better standing while facing adversities. Read More
Here are some of the many benefits which will affirm that it is wiser to opt for more than one life insurance policy:
- Different maturities – This allows you to look after your changing needs and requirements based on the liabilities in your life at different periods of time.
- Smaller covers – This allows you to have more than one plan adding up to a cover instead of one policy with a high sum assured, which is costlier.
- Milestone based protection planning – You can decide to take life insurance based on your dependents. It could be for marriage, birth of your children, their education, and purchase of your house depending on your savings plan.
The question at this juncture is how can one purchase multiple insurance policies?
Well, it is both possible and legal to hold more than one life insurance policies given that the terms below are fulfilled;
- You must disclose all your material possessions and policies.Hence, you must disclose all your previously bought policies to the insurer, failing which it can lead to a claim rejection.
- The combined sum assured of all policies should not exceed your human life value, which is the risk assessment calculated by your insurers at the time of policy application.
To conclude, you can buy as many life insurance policies based on your requirements and financial needs and life situations. These policies will in turn contribute a great extent to your personal goals and act as assurance for your dependents.