Have Multiple Life Insurance Policies? Here are 5 Things You Should Know!
Would it be inappropriate for your family to have a fleet of vehicles? If you’re able to afford it, no doubt, it won’t. The same is true of life insurance coverage. You can accommodate as many as you can. Yet there is one key distinction.
Purchasing numerous life insurance policies is compleely legal, and your family won’t have any trouble submitting multiple claims. Yet, the following are five very important things you should remember to understand better what life insurance is:
Numerous Liabilities Covered
If you have several open debts, it makes logical to purchase multiple life insurance policies. You might get three types of life insurance, for instance, if you had a home loan for Rs. 40 lakhs for 20 years and a business loan for Rs. 20 lakhs for 10 years.
Most lenders recommend getting term insurance that reduces in price as your loan debt increases. You should be aware that this insurance policy will only cover the remaining loan balance, despite the fact that this is better than not covering the loan at all.
Is Covid-19 Infection Covered by a Standard Health Insurance Policy?
Any claims linked to Covid-19 treatment (including the quarantine period) will be eligible for coverage under a typical health plan, under IRDAI (Insurance Regulatory and Development Authority of India) regulations. With the standard hospitalisation coverage for all viral diseases, including Corona, it will be available to assist the insured. The benefits you receive from your health insurance plan of choice will be applied to your Covid-19 therapy as well. Yet you must stay in the hospital for at least 24 hours in order to receive treatment through your medical insurance. If you need to be hospitalised, all of your medical expenses—including those incurred before and during the hospital stay—will be paid. #
Increase/Reduce Include Your Age
As you get older, two things occur:
One: When your family and income expand, you can get more insurance.
Two: If you are accumulating assets, your need for life insurance decreases.
You have a choice in which direction your life insurance policy will slant. With the low cost of term life insurance, you can easily decide to expand the life insurance rather than decrease it.
There are now two methods to achieve this:
- Purchase more term life insurance when your family and eligibility swell. Get a term insurance policy that permits you to increase the sum insured at various life stages.
- The second choice is provided to you through the online term plan. When your family expands, the life-stage increment option can help you avoid a lot of difficulties.
Some things to remember:
Existing customers can avoid going through the entire underwriting procedure.
A life insurance calculatoris a simple and easy-to-use tool you may use online to determine the amount of coverage required based on your needs.
Limit of Value of Human Life
You are allowed to buy an unlimited number of life insurance policies, but you must adhere to the cap set by the human life value (HLV) assessment. Your income determines HLV, which might be up to 20 times your yearly take-home pay. The life insurance firms will always inquire about your current life insurance policies when you purchase a new life insurance policy. If your current life insurance coverage equals or exceeds this maximum, the insurer may refuse additional life insurance.
The cost of administering more policies
The time and effort required for managing numerous policies is a further consideration. Also, if you get comparable insurance after a time-lapse, your total premium cost can increase. You can utilise an E-insurance account to handle all of your policies in one location if you choose to invest in several life insurance plans for whatever reason.
Protection against Claim Rejection
Before we end, there are a lot of publications that assert having numerous life insurance policies can protect you from the danger of having a claim denied by one insurer. This argument might have had some validity. However, contemporary life insurance firms in India have strong networks.
With the aid of modern technologies, they can resolve claims more quickly in addition to more properly underwriting risks. Hence, it is possible that the other insurer will accept your claim if the first insurer finds sufficient grounds to do so.
Hence, correct disclosure of pertinent information, rather than having several life insurance policies, is the strongest defence against a claim denial. Make sure you understand all aspects of what is life insurance.
A life insurance calculator is a simple tool to check the amount of premium you would have to pay.
