Single Term Insurance with More amount is good or 2 Term insurance with diversified amount is good?

POSTED BY Tripati ON November 4, 2011 3:06 pm COMMENTS (2)

HI,

My age is 28 and I am planning to go for Term Insurance around 50lakhs (5000000).

Which will be a better way: having one policy SBI Smart Shield of SA 5000000 or having two policies one SBI Smart Shield of SA 2500000 and LIC Amulya Jeevan of SA 2500000.

My concern is which approach will be better during claim process if anything uncertain happens!!!

Policy Term: 30yrs

SBI Smart Shield: Age- 28, SA- 5000000, Premium Amount- 9480

or

SBI Smart Shield: Age- 28, SA- 2500000, Premium Amount- 6116
LIC – Amulya Jeevan: Age- 28, SA- 2500000, Premium Amount- 7525

Kindly suggest.

2 replies on this article “Single Term Insurance with More amount is good or 2 Term insurance with diversified amount is good?”

  1. vinayak k rr says:

    if ur going for a term plan please b sure that u dont miss on the premium…bcoz now the rules are changed so in case if the plan get lapsed all the money will b in wane.please check the claim process of each company bfore u take the plan..all are under one umbrella (irda,ombusmen) but …act different.so if u would like to go with single term insurnance then plz check what happens if the policies are withdrawn or cancelled. As i am facing issue with SBI life in the term plan that we took for my mom, so i suggest u to go for others and before that plz check the claim procedure and how many claims the company has given in an year.

  2. Maitri Maroo says:

    Option 1 should be considered. As the premium payout is less than the twin covers. Insurance policies should not be confused with Mutual Funds, there is no need to buy covers from different companies for diversification.

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