Image Credit by Google
Most Indians are also underinsured, it is also true that multiple life insurance policies are quite common in India.
Image Credit by Google
This is higher in the case of traditional insurance plans offered by LIC through endowment and money back plans.
Image Credit by Google
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.
Image Credit by Google
When this child grows up and starts working, a relative or acquaintance will motivate him to buy his own LIC policy.
Image Credit by Google
Not as life insurance but to save tax! And when it is realized that the traditional plans are no good.
Image Credit by Google
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.
Image Credit by Google
But make sure that when you are buying a new life insurance, you inform the insurer about any existing life insurance you have.
Image Credit by Google
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.
Image Credit by Google
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.