The advantages of multiple term insurance policies are as follows:
Each insurance policy will provide your nominee with substantial coverage. This will ensure that your nominee can receive more benefits upon your unfortunate demise. They can easily use this money to accomplish their future goals, such as financing a start-up or completing higher education.
Easy Claim Approval
The chance of your nominee getting approval for their claim increases significantly. This is so because even if the claim of one policy gets rejected, they have a chance of getting approval for another claim. Also, even if one insurer delays the claim approval, the other insurer can approve it faster.
More Rider Options
You can opt for different riders with different term plans. This prevents an increase in the cost of premiums for a single policy. Rather, it evenly distributes the cost of premiums among the policies, thus making all of them equally affordable.
Evolution of Policies
With time, the term policies keep evolving to cater to the specific needs of their customers. So you can purchase the latest policy with advanced benefits for increased financial coverage of your family.
Serves Different Needs
You can purchase more than one term insurance policy to serve different financial goals for family members. For instance, you can purchase a policy for your children’s education, another to meet their daily expenses, a third to finance their weddings and so on.
Ease of Loan Repayment
With increased coverage, your family can quickly pay the instalments of any unsettled debt after your demise. Thus, they will be left with sufficient funds to fulfil their personal needs even after repaying the loan.
Multiple Nominee Options
You can change the nominee for different term policies. This will ensure that each of your family members has sufficient funds after your demise. Thus, there will be peace in your family as they will not have to argue over the use of funds that they will be receiving from the plans.
More Savings on Premiums
You can avail of tax benefits of up to ₹ 1.5 Lakhs on the premiums of your policy according to Section 80C of the Income Tax Act. This ensures greater savings compared to what you have received on a single policy of the same amount. This money you can use to purchase another policy, or invest for wealth creation.
Moreover, you can increase the advantages of multiple term policies by purchasing them from different insurers.