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Most Indians are also underinsured, it is also true that multiple life insurance policies are quite common in India.

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This is higher in the case of traditional insurance plans offered by LIC through endowment and money back plans.

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I regularly meet people who have a total sum insured (cover) of only ₹10-20 lakhs, but they split it into multiple plans of a few lakhs each.

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When this child grows up and starts working, a relative or acquaintance will motivate him to buy his own LIC policy.

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Not as life insurance but to save tax! And when it is realized that the traditional plans are no good.

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Hence, it is perfectly fine to have more than one life insurance. Ideally, your life insurance needs are best met through a normal term plan.

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But make sure that when you are buying a new life insurance, you inform the insurer about any existing life insurance you have.

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The concept of HLV is a technical one and is used by insurance companies to arrive at a fair price for the right life insurance coverage for an individual.

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Now suppose you already have a few LIC policies which you bought a few years ago for a cover of ₹30 lakhs and you also have a term plan of ₹50 lakhs.

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