Buying term insurance is no longer an option - it is a requirement. No one can afford to live a happy and peaceful life without the assurance of a term life cover. Term insurance offers several benefits such as affordable life cover, long term coverage and debt protection. It is a common practice for people these days to buy not one, but multiple term plans. It is very possible for you to buy two-term plans from two different companies. But why should you do so? Take a look at this article to know the reasons and also to find out how you can get the two-term policies without any hassle.
Reasons Why You Should Get Two-term Plans
Here are some of the main reasons that tell you why it is important for you to consider getting two-term insurance plans from two different life insurance companies:
- More Coverage
The first and the most obvious advantage is that you get a higher life cover when you have two-term plans. For example, if your primary term plan has a sum assured of INR 5 lakhs, and you buy another term cover for INR 2 lakhs, your family will get a total amount of INR 7 lakhs after your demise.
- Higher Chance of Getting a Claim
If something goes wrong with one term insurance policy, and the claim is rejected, your family can fall back on the other term cover. This acts as an important assurance that you get when you buy two-term insurance plans from two different insurance providers.
- Easier to Cover Milestones
It is easier to cover your familial milestones if you have more than one term cover. For instance, if you have to pay for your child’s education, buy a home, pay your parents’ medical bills, etc, it may be difficult to cover all these expenses with a single term insurance plan.
- Segregation of Liabilities
You can segregate your financial liabilities with the help of two different term insurance plans. With one plan you can cover all your loans and mortgages. With the other, you can secure the education cost of your child and also the lifestyle expenses of your family members.
Keeping these points in mind, you can clearly see that getting two-term insurance plans can indeed prove to be very beneficial for you.
Getting Two-term Plans
There is no law or restriction that states that you cannot get multiple term insurance plans in India. If you already have one term cover and want another, you can go online and repeat the procedure that you underwent to get the first term plan. Here are some handy pointers for you:
- Check How Much More You Need
Remember, you already have a life cover. So before you get shopping, do a quick calculation to see how much you actually need. The second policy will only be a backup plan, so do not buy more than you need. Evaluate all your expenses and then proceed.
- Check the Cost
The next factor to consider is the cost of the policy. The cost of the plan is important because this is the premium you will have to pay, over and above the premium of your existing term plan. Make sure it is affordable so that the plan doesn't become a financial liability for you.
Once you know the value needed and the amount you can spare, proceed to run a comparison between all the available term insurance plans. This will help you to locate and get the best option at the best possible cost.
And finally, you need to simply pay the premium and purchase your new term life insurance plan online.
Follow these simple steps and you will have your second term plan in no time.
Points to Remember When Buying a Second Term Insurance Plan
Here are some important points for you to remember:
Remember the Premium Date
You will have two separate premiums to pay each month/quarter or year. Be very mindful of the proper dates. If you miss a premium payment, your term life insurance cover may lapse.
- Check the Insurer
If you are buying a different plan from a different insurer, make sure the new insurer you choose is good, reliable and has a healthy claim settlement ratio. Do not be in a hurry - do your research and select the insurance provider with a lot of care.
- Read the Fine Print
And finally, remember to read the fine print. Read the exclusions, terms and conditions very carefully to know the exact scope of cover that the insurance provider is offering to you.
If you are cautious about these points, you won't face any troubles while maintaining two different term insurance plans from two separate life insurance companies.