There is no one-size-fits-all answer to “How much life insurance coverage do I need?”. But if you are looking for a starting point to understand how much coverage you should get, a common belief is that about ten times your annual income plus liabilities can be a good start.
On the other hand, if you are wondering "How many life insurance policies can a person have?", know that there are various approaches addressing this.
Let’s dive in.
How Many Life Insurance Policies Should You Get?
In India, there is no legal limit to the number of life insurance policies one can hold. You can get multiple life insurance plans if necessary. While it may not be illegal, insurance companies may exercise discretion based on underwriting considerations. Each policy may undergo a separate underwriting process, where your health, lifestyle, and financial status will be evaluated.
It is crucial to ensure that you can afford the premiums for multiple policies without straining your finances.
Why Have Multiple Life Insurance Policies?
While not everyone may feel the need to have multiple life plans, there are several reasons why an individual might opt for them.
Increased Coverage:
To ensure your dependents are adequately protected financially, especially as your income and financial responsibilities grow.
Different Needs:
To cater to varied financial goals, such as by purchasing term plans for high coverage and endowment or ULIP plans for investment and savings.
Strategic Planning:
To manage premium payments and ensure coverage at different life stages.
If you plan to determine the premium for either a single policy or multiple ones, use an online life insurance calculator.
It is quite possible that, based on shifting priorities in life, your life insurance coverage needs may also shift. For example, you may feel the need to reduce your total coverage amount once you have paid off your major debt. In such cases, you can surrender your policy.
While there may be no solid restrictions on the number of life insurance policies you can buy, or the coverage amount you seek, it is best to not go overboard. Take stock of your needs and means before you commit a part of your income towards the much-needed future security.
Disclaimer:
IndiaFirst Life Insurance Company Limited, IRDAI Regn No.:143, CIN: U66010MH2008PLC183679, Address: 12th & 13th floor, North [C] Wing, Tower 4, Nesco IT Park, Nesco Center, Western Express Highway, Goregaon (East), Mumbai – 400 063. Toll-free No – 18002098700. Email Id:customer.first@indiafirstlife.com, Website:www.indiafirstlife.com, Fax No. +91226570600. Trade logo displayed above belongs to our promoter M/s Bank of Baroda and is used by IndiaFirst Life Insurance Co. Ltd. under license.
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