Second Life Insurance Policy: What You Must Know Before You Buy

With rising financial responsibilities and uncertain life events, many Indians are now exploring the idea of owning more than one life insurance policy. But is it legal, practical, or even necessary? Here’s what financial advisors and insurance experts have to say, answering the internet’s most frequently asked questions.

Can You Hold Multiple Life Insurance Policies?

Yes. It is perfectly legal and common to hold more than one life insurance policy. Experts advise that policyholders must disclose existing coverage when applying for a new plan. Failure to do so could lead to claim rejections later.
Are Multiple Death Claims Valid?

Absolutely. Your nominee can claim death benefits from all valid policies you hold—provided there has been full disclosure and all conditions are met. However, insurers use a calculation called Human Life Value (HLV)—typically 15–20 times your annual income—to cap the total cover you can hold.

Benefits of Multiple Policies

From covering increasing liabilities like home and business loans to syncing maturity dates with life goals such as your child’s education or retirement, multiple policies offer flexibility. They also serve as a fallback if a claim is rejected under one policy—though experts stress full disclosure as the real safeguard.

Managing Multiple Policies

While managing multiple plans can be cumbersome, digital tools like e-insurance accounts help streamline this process, much like a demat account for insurance.
An e-insurance account functions much like a demat account, allowing you to view and manage all your insurance policies in one place. It helps you organise multiple life insurance policies seamlessly and lets you submit service requests—excluding claim settlement—through a single digital platform.

Bottom Line

Buying multiple life insurance policies can enhance your financial security, provided it aligns with your income, goals, and legal limits. As insurance companies become better connected through data-sharing, transparency and timely planning remain the best protection for your family’s future.

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