Should I now take term plan from two companies to give it to two dependents ?

POSTED BY SANDEEPKUMARBC ON September 21, 2014 10:28 pm COMMENTS (2)

Sir,

I am 29 year old and  planning to buy term insurance for one crore rupees covering two of my dependents. Please suggest me,is it advisable to buy from a single company?or shall i diversify? Like I planned 50 lac each dependent. Out of 50 lacs i planned to buy 30 lacs term insurance from one company and 20 lacs one company.

Please suggest me…

Thanking you sir,

Sandeep.

 

2 replies on this article “Should I now take term plan from two companies to give it to two dependents ?”

  1. nsabhyankar says:

    If the only reason behind going for different companies is to provide for two dependents separately then it is not needed. The nominee is more of a caretaker of the money who receives it from the company. He or she does not necessarily get to keep all of it.

    If you want to make sure that each of your dependents gets the money, I would suggest you make a will and clearly specify the dependents’ names and the amount each of them receives.

  2. Hemanth Chandra says:

    Better keep things simple.

    Suppose the insurer dies and it will be real hard for them to run around the insurance companies to get the insured amount which is a tough task as they have a emotional loss already.

    You may ask what if the claim gets rejected at a company ?

    The reason might be that all the details are not clearly furnished while taking the insurance. Like giving in the application form as ‘Non-smoker’ while the insurer is a smoker and the insurance company finds it at the time of claim and might reject it.

    So, please declare all the facts while taking the insurance by which the claim process will be fast.

    Also, don’t take from too many companies. Totally for all dependents, taking from 1-2 companies is ok. If you increase more, burden will be increased and not that fruitful.

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