India's 1st IRDAI Approved Insurance Web Aggregator
Should I split my term insurance cover under multiple policies? | FAQ #24
Nov 10, 2017 | 98 VIEWS
Splitting a large cover is a good idea for a variety of reasons. But I would recommend it typically if the cover is greater than a crore of term insurance. The split is good for one good reason.

Gives you an element of flexibility - Today, we find plan variations being launched at increasingly competitive price points. We find some great innovative features being added too. So in case you have 2 plans, you could continue with one and maybe discontinue with the other and opt for the new improved plan. Please note that there is limit to the total life insurance cover that will be offered to you by all life insurers put together. Also, with increase in age and change in health conditions, you may observe an increase in premium.

And then there is a basic diversification of cover which is not a bad thing to do. A bit of additional safety as you would do with anything - not putting all your eggs in one basket.

Of course, it is not a great idea of having too many plans. It saves you the trouble of managing the policies which can be quite tricky with multiple due dates and all.

Happy to take any questions or suggestions on this. Please drop in a comment and we will get back.

Get the Best Term Insurance Plan
Compare Now

Leave a Comment