Life insurance provides financial protection to the nominee of the person who has taken a life insurance policy. In fact, on the death of the person insured, the life insurance company pays the sum insured to his nominee. A person can buy more than one life insurance policy from different insurance companies.
Why should I buy more than one policy?
As the income of a person increases, so do his responsibilities. Hence one needs to buy additional life insurance. Buying an insurance policy from more than one life insurance company reduces the risk of claim rejection. If for any reason one company rejects the claim, then the claim amount is received from the other company. One can also buy an additional insurance policy keeping in mind the loan taken including the home loan.
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keep these things in mind
If you buy a new life insurance policy, it is necessary for you to inform the life insurance company about all your existing life insurance policies. You will also need to provide your income related documents to the company, which will explain why you are buying additional policies.
If the value of all his insurance exceeds the value of the person’s life, the insurance company may reject your offer to buy a new policy. 20 times the annual income is considered as the basis for the value of a person’s life.
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How to manage policy
It is important for you to keep all your policies active. For this you have to pay premium regularly to the insurance company. You also need to keep the nomination updated. You will have to modify it if necessary. If you have more than one life insurance policy, then e-insurance account will help you a lot. This will give you easy access to all your policy information.
Keep these things related to the policy in mind
If you have more than one policy, then the sum insured and nominee of each policy must be known by the family members. This will make it easier to claim in case of any untoward incident.