Life is moving at a fast pace these days with no guarantees of a future, and even the present is looking quite uncertain. It becomes necessary to have a credible and robust plan in place. It is also significant in the unfortunate event of your untimely death, where your family members must be taken care of. Having only one insurance plan with low life cover is not worth it. Time is unpredictable, and it is ideal for you not only to have more than one but the best insurance plans to safeguard your family’s future.
Most people consider buying insurance as an expense and think that if they have purchased an insurance policy for 20-25 years, it is enough to cover their needs. This is a myth as life keeps changing and with it the requirements and needs of an individual too. Hence, it’s wise to buy more than one insurance policy and be safe than sorry.
Let’s bring you some of the major reasons why multiple insurance policies are an absolute must-buy
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Safety Against Claim Rejection
It is not a norm that insurance claims get rejected, but the fact is some of them do. What happens in a scenario where after your death, the insurance company rejects the claim for some reason, and your family doesn’t receive the benefits? You end up paying a regular insurance premium for a period and those don’t help your family at all! In that case, it is better to have more than one policy so that there are more chances of your family getting insurance benefits from one or the other company. Based on that, they can even fight with the company that declines them the proceeds of the insurance.
Changing Needs
Many of the insured do live beyond the term of the insurance. For example, if you have bought a policy when you’re 25 years old and the term of the plan was 30 years, the policy would expire and be over by the time you turn 55 years old. Probabilities are you will live beyond that period and in that case, you get a lump sum amount on maturity. This money can be used for various other priorities you might have at that age, including marriage for kids or your retirement needs. The best insurance plans do offer you substantial returns on maturity as well as benefits in case you die before the term expires. It’s a win-win situation in both cases. Moreover, it is a smart move to buy insurance policies at different stages of your life. For example, you can buy one at 25 years of age and then another at 35 years of age, keeping a reasonable term in mind. This way you’ll be assured of guaranteed returns at different periods of your life-giving your financial stability and safety.
Multiple Dependents
In our country, we still have a joint family system and most elders are dependent on their children after their retirement or maybe before that. If you also have such responsibilities, it is advisable to divide your financial responsibilities to avoid any disputes. You can have different insurance policies with different nominees thereby ensuring that your parents, as well as your spouse and children, are all taken care of at least financially. Yes, different policies with large covers may cost you a bit more regarding the premium amount, but that is a better option any day considering that your family and dependents can live a financially secure life after you.
Debts
Another important reason to have more than one insurance plan is the amount of debt you have. If, for example, you have taken a home loan for 20 years, it is a good idea to take a pure term plan for the same amount. This way, you keep your family safe from bearing the responsibility of paying off this debt due to unfortunate circumstances. The additional insurance premium that you’ll pay is going to be an investment in the long term.
Different Maturities
As human beings, we always try to predict all possible scenarios through which we move forward in our life, and in certain periods of life your family basic’s needs demand money to fulfill them. Like admission of children in college, a new car for family and having a long vacation, Well all these expenses in one go is quite impossible for a middle-class family. Because, before spending money they think about their upcoming days and some more hidden expenses, that children of family don’t know about those expenses.
If you are insured by an insurance policy, it is quite a good and impressive step? But, do you know insurance is categorized by different objectives. With the help of an insurance policy, you can fulfill the basic need of your family. An endowment plan is a way through which you can not only protect your family, but you will get the return of your investment and it’ll help you financially too. An endowment plan is a plan through which they will protect while playing the role of insurance, and they will provide you money as per your investment. It’s a mix of insurance and investment plan, it never happens that a person does not need money, but you predict that in upcoming years you’ll need money to fulfill the basic needs.
Multiple insurance policies also help you; if that policy has different maturity periods and one of the policies will help you financially after the maturity period is over.
Smaller Cover
You have had an accident in your family and after that, the insurance company also cleared the claim, after knowing this news, you decided to buy the policy in a hurry also bought the policy. But after some time you realize that in the rush to buy the policy, you forgot to pay attention to the policy coverage and now the coverage is not worth much attention. In such a situation, you can buy another new policy that gives you better coverage and for these reasons, it is necessary to be insured with multiple insurances. This is like a benefit of having multiple insurance policies, having a low range of coverage is worst and not paying attention to coverage during policy chat is more worst because if don’t know about the coverage and policy then you wouldn’t use it properly.
After doing a thorough research and an analysis of your financial requirements, choose the best insurance plans that not only cover you for a long period but also take care of your family’s long-term needs. Make the wise decision; make the right decision, now! Having multiple insurances means having multiple benefits and some extra amount, but the benefits are precious because having bought a second policy means you are trying to correct the mistake.