Dr Biju Parakkal
December 24, 2012 11:45 am
Could you please tell me the benifits of splitting a term policy into 2 or more , what does one actually gain out of this?
Thanks mate ..
Nothing other than dropping one in case you need to reduce your cover later on (dont ask why more money is always better for the family!)
Earlier some took the stand that splitting covers will reduce probability of rejection then they changes their tune and said if you are honest there is no chance of rejection one insurer or several. Which makes better sense.
Term insurance is taken for the benefit of family. Getting claims from two insurers is a more of hassle than from one considering that they will be dealing with death and not in the best frame of mind. To me this is the chief consideration and single cover with honest inputs from our side followed by a medical test should be good enough.
If taking a home loan additional cover can be taken with decreasing cover option as the loan gets paid out.
Other than that I can see no advantage
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