A term insurance policy is basically a traditional life insurance plan that offers the wider coverage with the lowest premium. When it comes to term insurance there are many different options that you can explore such as group policies and individual policies. To invest in a term insurance plan, it is very important to figure out all your insurance needs and after that, you should only go for the best term insurance plan. It is important for a person to reassessed the plan and it is a worthwhile option to go for a second term insurance plan. If you are investing in a second term insurance plan, then it is advisable to share the information about the first term plan with the second insurance company.
What is a term plan?
Term insurance plan is basically a form of life insurance under which one’s life is sufficiently covered. In case of demise of the insured, the payout is made to the nominee. In the case where the insured manage to survive till the maturity then he/she will not be liable to get any monetary benefit. Yes, under a term insurance plan, you will not be liable for survival benefit. A term insurance plan covers the risk at the lowest premium.
When it comes to term insurance claim or a death claim then it can get rejected easily because of various reasons.
- Wrong/insufficient information in the form
- Hiding accurate health history
- Lapse of insurance policy
Most term insurance policies get the approval easily. You can check the recent claim settlement ratios of various companies that will give a complete idea about the best insurer in the market.
The claim settlement ratio is an indicator of the performance of the insurance company. It may not be the absolute indicator but it can easily give an idea about that. If you witness any risk in settling the claim process of the company then you should look for the alternate options. By investing in two-term insurance plans then you can surely overcome to this issue up to some extent.
Benefits of two-term insurance plan
You can easily invest in two or more term insurance policies to fulfill your desires. You must also go for having more than one nominee in such cases. If you have two insurance plans then there will be no stipulation of nominating the same person both insurance plans.
Extra cover- With two term insurance plans, you will be having extra coverage.
Death benefit – The nominee will be liable to get benefit from more than one policy.
Less chance of claim rejections- If you go for multiple insurance plans, the claim rejections can be coped. If an insurer rejects your claim then you own a good chance by having a second insurer for settling your claim. With nominee/beneficiary is well protected.
Claim settlement ratio- The claim settlement ratio varies from insurer to insurer and plans to plans.
Reach the milestone- Holding multiple insurance plans can help you in achieving all milestones of your life easier. You can invest in a term insurance plan according to your needs that include children’s education, children’s marriage, and a new house is some of the new milestones that should be fulfilled
Death claim- If the insured dies before the end of policy’s tenure, the beneficiary will be liable to receive a lump sum payout. It will vary from plan to plan.
Well, it is very important to disclose all the information about your first plan for the second term insurance company. Moreover, if you are going for third one then don’t forget to tell the company about your first two-term insurance plan. To avail such benefits, invest in a term insurance plan today. You can use PolicyX.com to get the best one for yourself.
Just keep in mind that the misrepresentation of facts will lead you towards the rejection of claims.