There might come a time when you realise that the life insurance policy that you purchased does not offer sufficient coverage. Usually, during key events in one’s life such as one’s wedding, the birth of one’s child, etc., many policyholders might want to enhance their life insurance coverage.
If you are looking to purchase a life insurance policy or if you have already purchased a life insurance cover for yourself, it is necessary to know that it is legal to purchase another life insurance policy at a later point in the future. In the event of the life assured’s untimely death, the designated nominee will be able to claim the death benefit from all policies that the life assured had purchased, subject to certain conditions.
The death benefit is a certain guaranteed sum of money that is paid to the nominee appointed by the life assured if the latter happens to pass away during the policy tenure. The death benefit amount is usually equal to the sum assured chosen by the policyholder at the time of purchasing of the policy. Thus, in the event of the life assured’s death, his/her nominee will have to raise a death claim with the insurance company. The insurer will verify the claim and the supporting documents submitted by the nominee, after which the death benefit will be paid out to the nominee.
As mentioned above, policy buyers/policyholders can hold more than one life insurance policy at the same time. However, there are a few things that you will need to keep in mind if you are planning to purchase a second life insurance policy.
The key benefits of purchasing more than one life insurance policy are as follows:
While purchasing more than one life insurance policy might seem like a good idea, it is important to remember that your payable premium is also likely to increase if you have more than one life insurance cover. Also, many life insurance policies offer policyholders the option to enhance the sum assured during key milestones in their lives. Thus, if you wish to enhance your coverage, it is best to first check if your policy offers this option.
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