Should I split my term plan in two companies ?

POSTED BY Srinivasan ON February 10, 2014 3:43 pm COMMENTS (2)

Hi, I’m 36 years old. looking for good term insurance for 1CR for 30 years which should be reliable with claim settlement, cost effective and branded. earlier i was analysing – HDFC, Aviva, Max New York… HDFC – i have a limitation of going not beyond 25 years given HDFC max cap of 65 years and current age + 30 years..

Also – is it good to go with 1 insurance provider for 1 CR or to de-risk whether we can split 50L each and go for 2 insurance provider?

Regards

P.T. Srinivasan

2 replies on this article “Should I split my term plan in two companies ?”

  1. Samrat says:

    Hi Srinivasan. There are pros and cons for that.

    Pros:
    Diversification: In future at the claim time if one company refuse to payout the money still you will have one more company to look out for. So chances of settlement will be better in case of two.

    Cons:
    High Premium: If you take two policies of 50 Lakhs the premium will be more which you pay if you take single policy of 1 Cr.

    IMHO if your case is genuine at the time of settlement your family will not face any problem. Its not like they are not settling the claims. Almost every one have claim settlement ratio of >80%. So i would go for single policy of 1 Cr.

  2. ashalanshu says:

    Dear Srinivasan, for your family’s well being, it’s advisable to keep the things simple. So opt for a single big cover from the insurer of your choice.

    Thanks

    Ashal

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