Do you need a Second Life insurance policy? Here’s what you should consider

Life insurance coverage with a limited sum assured may be sufficient for a 30 year old, but it may not meet the additional needs and responsibilities of a 50 year old. In such a case, a person can take out a second life insurance policy. Politics.

Do you need a second policy?

Although it is possible to claim two or more life insurance policies, it is up to the policyholders to decide if they want to purchase a second policy based on their insurance needs. Life insurance policies are taken considering not only the current situation of the family, but also what the future entails. While in health insurance the coverage depends on future medical expenses, in life insurance the coverage estimates the value of the individual’s life. Therefore, an individual should choose one or more policies in order to offset the economic value of his life. A second life insurance policy complements the coverage of the first policy. Apart from this, the policyholder can also rely on the second policy in case a claim is rejected.

Benefits of a second life insurance policy

With two policies, a person can have separate maturity dates and use the sum insured to meet changing financial needs at different stages of life. An individual can also opt for a policy based on personal milestones like marriage, raising children, and buying a home.

What are the things to keep in mind?

A person considering purchasing a second life insurance policy should inform the insurer of the other policy and the reason for choosing a second policy that they hold.

“It is advisable to have a term insurance plan and an additional policy to meet the additional needs that come with increased lifestyle needs and additional responsibilities,” Mint said quoting Indraneel Chatterjee, co-founder of RenewBuy InsurTech.

Chatterjee also advised refraining from taking out multiple insurers at the same time to avoid complications and consulting with an insurance advisor to ensure he or she is getting the right policies for their needs.

(Edited by : Sudarsanan Mani)