Term insurance
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How to Claim from Multiple Term Insurance Plan?


A term insurance plan can provide financial assistance to the policyholder’s family in case he/she passes away during the tenure of the policy. Furthermore, a person can purchase multiple term insurance plans. Hence, the beneficiaries can claim from these plans and get higher benefits.

Read this article to know why purchasing multiple term plans can be a good option.

Term insurance can offer a sum assured to the policyholder’s family if he/she dies during the policy tenure. Therefore, such a plan is important to secure a family from a financial burden. It can help them meet their future expenses. Furthermore, to get higher benefits, a person can purchase multiple term insurance plans. But there are a few things that an individual needs to keep in mind before buying multiple policies.

Sum Assured of Multiple Policies Can’t Exceed Human Life Value (HLV)

HLV is the value of an individual based on his/her income, liabilities, and savings. This value also describes the loss of income and the increase in liabilities that an individual’s family will suffer if the person dies untimely. HLV enables an individual to estimate the amount that will be required in case he/she passes away untimely. Therefore, it can help the person determine the right life cover amount based on his/her savings, income, liabilities, etc.

Generally, insurance companies offer insurance cover, which is 10 times the annual income of the person. In case the person’s total income is eligible for a higher cover, he/she can buy multiple term plans. However, to get multiple plans, the person needs to provide proof of annual income. Furthermore, the sum assured of all the term insurance plans can’t exceed the HLV.

Declaration of all the Term Insurance Plans

In case a policyholder wants to purchase another term plan, he/she needs to inform the new insurance company about all the previously purchased plans. If the policyholder fails to declare the existing plans, then the claims will be rejected.

The Policyholder’s Health

The insurer can ask for another medical test if an existing policyholder wants to buy another plan. The benefits of multiple plans can be availed in case the insured person is in good health.

How to Claim Multiple Term Plans

While claiming multiple term insurance plans, provide all the information about every term plan to the insurance providers. The insurers will follow the process as per the guidelines issued by the IRDAI. A ticket can be raised with the insurer in case there are any problems while claiming the policies. If the insurer isn’t responding, then such a problem should be raised with the IRDAI.

Benefits of Purchasing Multiple Term Insurance Plans

There are various benefits of buying multiple term plans. One of them is that the beneficiary can avail death benefit from multiple policies. Hence, he/she can get higher financial protection. Multiple term plans help in avoiding the risk of claim rejection. If one of the insurers rejects a claim, then the beneficiary will have another insurance as an alternative.

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