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Are Multiple Insurance Plans Useful?

As the maxim runs, “The more the merrier,” is applicable in every phase of human life. Humans are never satisfied with just one product, since they need more to satiate their desires. Be it gadgets, clothes, accessories, cars, etc; the human mind is actually programmed to want more. Therefore, when it comes to making financial plans, then why stick to one policy or plan, when a number of options are available in the market? The same logic applies to insurance plans, which are available in varied options with varying features and benefits.

The advice is to opt for multiple insurance plans since it proves useful in many ways. Also, it makes sense to invest your money in different plans, as one insurance policy may offer certain benefits while another insurance policy gives you a different type of benefit. Read further to know how seeking best life insurance plans can help you in different ways.

How Multiple Insurance Plans prove useful?

  • Optimum coverage, affordability– In a world where uncertainty prevails always, you should be adequately insured. This therefore means that you should opt for a life insurance that sufficiently covers all types of eventuality. However, it is difficult to find high coverage policy with low premiums. The advice is to buy small plans that can provide the best solution towards ensuring a strong life cover. In such cases, affordability becomes easier.
  • Looking for lower premiums? Buy multiple policies– Instead of paying a hefty sum for a highly sum assured insurance policy, it is best advisable to opt for multiple policies that come with lower premiums rates. The premiums are easy to pay and you get an aggregate of good amount collectively of all the policies.
  • Investing in multiple policies ensures better claim settlement probability– You should know this that life insurance companies in India have a tendency to reject policies in case there are any anomalies in them. In most cases, the policy may not be annulled wholly, but a part of the claim may be nullified partially and eventually only part of the claim is payable. The advantage of opting for multiple plans lies in the fact that it eliminates the risk of any complete claim rejection. This signifies that if one insurer cannot settle the whole claim, another insurer will settle a part of the claim. It, therefore, suggests that the policyholder won’t be losing everything if a policy is annulled.
  • You get a comprehensive coverage– You may not find all benefits from a single policy. The insurance market is full of competition and there are different types of insurance plans available, life insurance or term insurance, health insurance, etc. As the competition if becoming tighter, insurers are seeking unique ways of convincing investors. Therefore, seeking multiple plans means you can get an accumulated comprehensive coverage on life and health.
  • Diversification of liabilities and risk– In the beginning, you may need the urge to invest in various insurance policies so as to diversify your risk. In the latter stage, if you feel that you may not need so many policies, you may cancel the ones that are not required. By following this method, your finances are strategically invested that can yield the results you are looking for.

Another popular saying is, “Do not put all your eggs in one basket.” The significance is that do not invest all your money in one life insurance policy or term insurance. This implies that it is better off that you have multiple policies to make sure that the coverage amount is optimum and even affordable. It will ensure that your claim experience gets positive. Hence, it can be said that you should look out for maximum benefits and features of a comprehensive coverage.

What do you think?

5 points
Advocate

Written by Yash Sharma

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