life insurance policies: Why you need multiple life insurance policies and how to manage them

Life insurance coverage protects the nominees financially in case of loss of life of the insured. One can take a couple of life insurance coverage coverage throughout completely different insurance coverage corporations.

Want for a number of insurance policies

Through the course of 1’s life, whereas the earnings of the individual goes up, new obligations are likely to get added. Therefore one could should buy further life insurance coverage cowl. The insured can hedge the danger of rejection of a declare with one insurance coverage firm by insuring life with one other insurance coverage firm. One could buy life insurance coverage insurance policies to cowl for any loans availed by them resembling housing loans.

Shopping for a number of insurance policies

Particulars of all current life insurance coverage insurance policies have to be offered on the time of filling up the proposal type for a brand new coverage. Revenue paperwork have to be offered for the insurance coverage firm to evaluate the necessity for insurance coverage. The brand new insurance coverage firm could reject the shape, if the present life cowl exceeds the human life worth estimate which is calculated on the premise of earnings of the insured as much as about 20 instances his annual earnings.

Managing insurance policies

You will need to preserve your insurance policies alive by often paying the premiums. Additionally it is essential to preserve the nominations up to date and make vital adjustments each time wanted. Opening an e-insurance account turns into helpful whereas managing a number of insurance coverage insurance policies. One can get a one shot overview of all of the insurance policies held by the individual with this facility.

Level to notice

This can be very vital to have an up to date log of all of the life insurance coverage insurance policies with particulars resembling sum assured and nominees and this log must be recognized to the relations or dependents.

(Content material on this web page is courtesy Centre for Funding Training and Studying (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)


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