Term insurance is emerging as one of the most preferred policies for securing the life of loved ones on a financial aspect. In order to create a future corpus, buying term insurance does emerge to be a wise decision. But, with growing demands across different stages in life, buying single-term insurance would not be sufficient. Hence, in this case, one can definitely buy more than one term insurance policy. However, it is equally important to consider all the terms, conditions, advantages, disadvantages, etc., of the other policies that one wishes to buy.
While opting for multiple-term insurance policies, the insured person should also take note of the requirements of the policy as well as one’s financial capacity. The policyholders can also use a term plan calculator to calculate the amount of premiums that one has to manage. This will also help the insured in knowing about the risk probabilities associated with it.
Thereafter, one can then plan to take a final call of staying with one single-term insurance or going for more than one policy. Indeed, the term insurance plan calculator helps the policyholder in making the right move.
Factors to Consider While Choosing Multiple-Term Insurance Policies
In case one is going forward with multiple-term insurance policies, then he/she should also consider certain factors. This includes insurance coverage and services, as well as regular premium payments. All of them are discussed here in detail below.
- Regular and timely premium payment:
Regular premium payments are required to be paid at the scheduled time. Don’t wait for the grace period. Once you opt for more than one term insurance plan, make sure their premiums are paid on time. Here you can use the term insurance calculator. It would be best to make the automated premium debit through bank accounts. It will ensure regular and timely payments of the premium. With the help of the term plan calculator, you can make the correct estimate of the premium on time and can set the automatic debit option active.
- Gather all the documents & inform the nominees
It is better to keep all the term insurance policy documents in one place. Inform the nominees at the same time. You can use an eInsurance Account (eIA) as well to keep all the details and records of the policies safe. Inform the password of the same to the nominees. It doesn’t matter how many term insurance policies you have; you need to keep them in a safe place and together.
- Keep the information updated in all term plans.
Changes in contact information, address, nominees, or any other relevant information should be updated on your term insurance policies. It is better to do so on time to avoid the last-time hassle. If you have stored all the insurance papers in the EIA account, then update the address there, and all the respective policies will get updated simultaneously.
Benefits Of Multiple-Term Insurance Policies
Apart from extra financial coverage, there are numerous benefits the insured can get from taking more than one insurance policy. Here are some of them mentioned.
- Multiple plans with less coverage lead to ample coverage
With more than one term of insurance, the insured can have significant and better coverage. It is cheaper than a one term plan in India with a higher sum assured. A high coverage amount may also make sense to diversify term plans among different insurers.
- Minimising the risk of claim rejection by the insurer
The likelihood of claim denial or delay is dispersed across numerous insurers when you have more than one policy. Since you are urged to provide all factual information at the time of policy implementation, there may be numerous occasions where crucial facts are withheld unintentionally. As a result, the claim is rejected or delayed. However, with many insurers, the probability of experiencing this is low.
- Multiple additional riders
One can opt for different riders on different policies if there is more than one term insurance plan. This is one of the advantages the insured will get with multiple-term plans.
Conclusion
Now that you know about the importance, pros, term insurance benefits, etc., of multiple term insurance policies, you can accordingly opt for it. While browsing different plans, one can check the Tata AIA life insurance policy plans and various other policies and choose the one that best suits their requirements and spending capacity. Most importantly, one should definitely calculate the premium amount with the help of a term plan premium calculator and then take an informed decision.
