Can You Own Multiple Life Insurance Policies?
Buying life insurance is a way to ensure a secured future for your loved ones. But there is often quite a lot of confusion around which type of policy to get, what the right policy duration or the right sum assured is, and other such details.
Getting these details right can be especially overwhelming for first-time policy buyers. While it is often noted that the process of buying a life insurance policy today is much easier than it once was, it can still take a bit of time for new policy buyers to get acquainted with the minutiae.
When such is the case, it is possible that you are not entirely happy with your life insurance plan in the due course. This could also happen when your requirements change over the course of time. For example, your family may grow in size, and you may start shouldering the responsibility of newer members, possibly young ones, who would depend on you.
In such cases, you may feel the need to rethink your previous policy decisions. If your growing responsibilities lead you to seek more from life insurance, one of your options is to get multiple life insurance policies.
But is it possible to get multiple life insurance plans for one person? Let’s find out.
What is Life Insurance?
Before we dive into the details of getting more than one life insurance plan, let’s take a quick look at what life insurance is.
Life insurance is a way for you to ensure a better future for your loved ones. It is a contract between the policyholder and the insurance provider, where the policyholder is required to pay premiums for their chosen policy, while the insurer will offer all the features and benefits of the policy.
One of the most common features offered by life insurance is the death benefit. Depending on the policy type you buy, you may also be offered maturity benefits, wealth creation, and more.
Before you buy a policy, you can get premium estimates using a life insurance calculator available online. This will help you get a better idea of what you may expect from the policy, and what would you be required to pay for it.
Multiple Life Insurance Policies
There are various situations where a person may feel the need to get another life insurance policy in addition to the one they have. One of the situations where such a requirement may arise is when your sum assured from the first policy is not sufficient or is not matching your current lifestyle requirements. Another such situation is where you need to leave a legacy for multiple beneficiaries, and you may feel the need to leave a separate policy for each of them.
If you are someone who is wondering whether you are allowed to have multiple life insurance policies, or want to buy another life plan, know that it is possible for you to do so. You can have multiple life insurance policies and your nominees can simultaneously claim them as well.
When Buying More Than One Policy
Buying multiple life insurance policies, and claiming them, is possible. However, when looking to secure your family’s future, it is also important to ensure that your present is not compromised. Paying premiums for more than one policy can prove to be financially hefty.
Hence, before you get a new life insurance policy, it may help to get an idea of your premiums. You can use a life insurance calculator to get premium estimates for each plan you seek to buy.
It may help to bring the premium costs lower if one of the policies is term insurance, since they tend to be more affordable as compared to other life insurance plans.
Before buying your second life insurance policy, review your long-term and short-term goals, and remember that getting a life cover is a long-term commitment. Ensure that a second policy is what you truly require and that you are taking a well-thought step towards financial well being.
To sum it up, it is possible for people to take multiple life insurance policies and for their nominees to claim them as well. However, remember that it is a long-term commitment and ensure that it is the right decision for you and your loved ones.