Death Claim: More than One Life Insurance Policy, Possible?!

And the Policies again?! The term itself is brain-storming and boring for layman. Do you often get hesitant to decide in which policy to invest as you are not equipped to handle multiple policies? Let us take one of the claims and check if we can avail more than one kind of claim or not.

In a simpler manner as Nirmal Singh 3C talks about Death claim.  In the case of Life Insurance, if the insured person’s demise occurs before the end of the policy duration, the insurance money is being received by his or her beneficiary, which is called as Death Benefit.

The request, the beneficiary makes for the payment of the amount due in accordance to the terms and conditions is termed as Death Claim.

Basic question that arises in our mind is that is it possible rather legal to acquire more than one life insurance policy and make claim for all those policies in case of the event occurrence.          

And the answer to it is affirmative. One has all the rights and it is absolutely legal to buy and hold more than one life insurance policy. However, as everything from pin to needle has its own flip-parts, under few circumstances it is achievable.

Disclose all material facts. Before applying for a new policy, previous policies undertaken should be disclosed so that they are cognizant of your existing coverage. It ascertains the choice of new policy in a better fashion. The new policy extends your coverage in line with your personal goals as reported by Nirmal Singh 3C. Not adhering to it would cause misinterpretation and a rejection of the death claim.

The combined sum assured of all policies does not exceed your Human Life value. In the case, when an insurance company receives an application, a process of risk assessment called underwriting begins. The medical conditions of the applicants are assessed. Also, the applicant’s income and existing life cover is also assessed for the purpose of financial underwriting. Collecting this information, Human life value is being calculated by the insurer. The combined value of different policies taken can in no condition exceed this value.

So the question arises, what is the benefit of multiple insurance policies?

It’s a hedge against claim rejection. It is more disappointing to see that your family is not receiving the benefits in your absence. The other thing is that it will help you with milestone based protection planning. Life insurance policies are adopted based on the dependents. With the due course of time and following of events, policies need to be restructured. Multiple Policies ease such load.