Under What Circumstances Do Multiple Term Insurance Plans Prove Beneficial?

People generally prefer to opt for the term plan to secure the future of their loved ones. Term insurance policy is a type of life insurance that offers protection for a specific term, or finite amount of time, at a predetermined rate of payments. It safeguards the future of the insured person’s family members in the event of uncertainties. 

However, it is a general question which often comes to our mind whether one term insurance policy is enough for complete coverage or should a person buy multiple term insurance policies. Thus, we have hereby compiled this informative read wherein you can know the answer to this question. We have also included the circumstances where term insurance in India can be better than a single online term plan. Read the article further for better comprehensive and in-detailed information. 

Circumstances Where Multiple-Term Insurance Plans are Better Than a Single-Term Plan 

There are certain circumstances where you must get multiple-term life insurance policies instead of a single-term plan. Multiple term insurance policies amounting to a substantial cover may cost slightly more than a single term insurance policy, but they also provide several benefits. 

When the cover is substantial, it is also a better idea to diversify term insurance among several insurers. However, consider the factors like premiums, advantages, and disadvantages along with the terms and conditions of each term insurance policy before buying it. 

These are the circumstances where you must get the multiple term insurance policies: 

  • When you will need to address the changing financial needs in the future

Our financial needs must be reviewed because our lives change as well. A person doesn’t have a lot of obligations to bear when they are young and just beginning their careers. At this point, modest coverage insurance seems adequate to satisfy one’s dependents’ financial needs in the event of death or uncertainties. 

Even the responsibilities at this age, such as making payments on a student loan for a university education or installing a new car, are not so significant. However, the obligations increase as you age. It is wise to make an additional term life insurance like Tata AIA policy purchase at this time to fill the coverage gap brought on by the increased responsibility.

  • In case you want to cover the future liabilities

You might think buying a single term plan will allow you to save more money than buying several different ones, but this is untrue. Instead of increasing your expenses, buying term plans with various maturity dates will help you save money. 

  • If you want to prevent the risk of claim rejection

In this endeavour, it is best to proceed with as much caution as possible. Although insurance companies usually do not reject claims except if the proposal form is factually inaccurate, there are times when claims are not settled. When you are not present, this can cause a great deal of anxiety in your family. 

To avoid such an uncomfortable circumstance, it is recommended that you purchase multiple term insurance policies so that if one insurance company rejects your claim, the second insurance provider can settle it. 

Nevertheless, it is critical to notify all insurance companies of any current term insurance policies. Failure to do so will almost certainly result in rejecting all claims. Furthermore, to prevent unnecessary claim rejection, make sure your insurance form is completely transparent. 

Conclusion 

It is always better to be on the safer side from the beginning. Hence multiple-term insurance policies are better than single-term insurance policies. Most importantly, if there is a similar case with you, as mentioned above, then you must get more than one term insurance plan to be on the safer side. 

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About the Author: Rachel

Rachel Mitchell: A seasoned journalist turned blogger, Rachel provides insightful commentary and analysis on current affairs. Her blog is a go-to resource for those seeking an informed perspective on today's top news stories.