You must have wondered if you could get multiple life insurance policies. Well, first of all, you can if you want to and second, your agent should be aware of other policies that you have bought to avoid claim rejection. Many choose multiple insurances for various reasons, but can you do with just one? Let’s take a look at the reasons that make others get two or more life insurance policies for one person:
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1 Protection from Claim Rejection
You are bound to buy a policy from an insurance company that has a higher Claim Settlement Ratio (CSR). But what if your claim were to be rejected due to some health factor that wasn’t covered by your policy? To ensure your family has financial security even if one insurance company rejects your claim is a crucial reason to go for multiple life insurance policies. From the time you buy a policy till the time of your demise, your health conditions could change leading to claim rejection.
2 Diversifying Amongst Insurers
It is thought that instead of getting one life insurance plan to fulfill all your needs, you can get multiple ones to secure every necessity. This enables you to spread your wealth amongst different insurance companies and make sure some of them come through in the time of need.
3 Having Different Maturity Dates
Having multiple life insurance plans with different maturity dates benefits you through various needs that have time constraints. Let’s consider that you have a loan that has to be paid off in the next 10 years. If you were to get two insurance policies it would aid in managing the burden of paying for both the loan and policy. The two policies could be smaller covers with the first having less premium. The second policy could start right after you finish paying off the loan so that you can contribute more money to the policy.
4 Affordable Policies
When you are young, the premiums are more affordable and you are able to buy at least one policy. As the years go by, you end up with a better salary and position making a second policy doable as well. This safeguards you with two life insurance policies. So the bottom line is if you can afford it then invest in different types of policies to get the best out of it.
Multiple life insurance is not mandatory as it can increase the money you have to shell out to pay the premiums. You can enrich your current policy by adding riders, which are additional benefits, for wider coverage. But at last, having life insurance is more important than not having coverage at all.