Confused: Should I Buy A Second Life Insurance Policy?

We never like one of anything and always want to have more. Whether it is in the daily food we eat, the dresses we wear, the cars we drive or even the mobiles we have, variety is the norm. On the other hand, when it comes to buying insurance, most of us shirk away from the name itself. A majority of the Indian population go uninsured and even the little fraction that is insured have no sufficient coverage.

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Call it our psychological notion or the dislike of the premium outgo, buying life insurance plan is either put off for a long time or invested in with the only view to save tax. In such a dismal scenario, talking about buying a second policy is voted down because the relevance of a second life insurance policy is usually lost on us. What about you? How many life insurance plans do you have in your name? If one, what about buying a second policy?

A second life insurance policy is nothing to be afraid of or confused about because it is beneficial in many respects. To put your mind to ease, I have listed below some common reasons why buying a second life insurance policy is a good thing. So, read on:

Supplementing Your Coverage

Having a sufficient coverage on our lives is very important whether in case of health insurance or life insurance. In health insurance, the expected medical cost is the basis of determining the coverage required while in life insurance you should estimate the value of your life. The coverage should be selected which should be optimum enough to compensate the economic value of the life of the breadwinner and as such a low coverage not good. Only a handful of people are reasonably insured while most of us having insurance are under-insured. As such, the second policy would help in supplementing the coverage level you already have from your first policy.

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Term Plans

₹1
Crore

Life Cover

@ Starting from ₹ 16/day+

₹50
LAKH

Life Cover

@ Starting from ₹ 8/day+

₹75
LAKH

Life Cover

@ Starting from ₹ 12/day+

Meeting Your Financial Goals

 There are different types of life insurance plans designed to meet the different financial goals of one’s life. There are term plan which fulfill the requirement of income protection, child plans which help in securing the future of our child, Unit linked plans help in wealth creation while pension plans help in retirement planning. So, the one policy you have would not provide a complete solution to your financial goals and so other policies are necessitated for the same.

For Wealth Creation

Life insurance products are not only pertinent in providing financial security they also provide an attractive avenue for investment if the correct plan is chosen. Unit linked insurance plans provide the dual benefits of wealth creation through market-linked growth and insurance protection. So, if you thought that your policy only provides insurance, think again. A ULIP (Unit Linked Insurance Plan) also provides a good investment instrument and can be bought in addition to your existing life insurance plans.

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Tax Relief

How can I not mention the much-depended on tax exemption which insurance products provide! Premiums paid up to Rs.1.5 lakhs are exempt under Section 80C and any benefit received is also tax-free under Section 10(10D). Though the inherent tax relief should not be the only consideration for buying another life insurance policy, it could definitely have an influence on your purchase decision when it comes to buying the second policy.

So, buying that second life insurance plan is not a confusing or a bad idea. You would only get benefits from adding more policies in your name. An optimal coverage, fulfilment of financial goals, an investment avenue and tax exemptions are all the benefits that come with a second life insurance policy. So, don’t get confused or wary when your broker advises you to invest in another plan. Study the plan, find out its relevance in meeting your financial goals and buy it without hesitation. You would only thank me in the long run!

Disclaimer: Tax benefit is subject to changes in tax laws.

Note: Check all the best term insurance plan in India.

Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.

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Premium By Age

˜Top plans are based on annualized premium, for bookings made through https://www.policybazaar.com in FY 25.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

+Rs. 487/month (Rs.16/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.

Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited

We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881

For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale

Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.

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+Rs. 820/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.

+Rs. 1,443/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.

˜ Policybazaar Promise reflects the guarantee offered by insurers. Price assurance is based on certifications shared by insurers with us.

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