Why single policy with a higher sum assured is better than two or more policies?
Let’s assume you are 35 years old and have decided to buy a term insurance plan of Rs 40 lakh for 25 years. But you’re not able to decide whether to go for a single term plan or buy two policies by splitting the coverage in the ratio, say, 50: 50 (i.e., each policy of Rs 20 lakh) , or approximately 60:40 (first policy 25 lakh and second policy for 15 lakh), or around 70:30 (first term plan 30 lakh and second term plan for 10 lakh) so that if need arises (i.e., your life insurance coverage requirement declines in future) you can make a exit from one of the policy. So you decide to evaluate which choice among the following four is most suitable: Case 1: Single term plan of Rs 40 lakh Case 2: 1st term plan of Rs 30 lakh and 2nd of Rs 10 lakh Case 3: 1st term plan of Rs 25 lakh and 2nd of Rs 15 lakh Case 4: Two term plans of Rs 20 lakh each Further let’s assume you’ve decided to buy a term plan either from HDFC or ICICI. Please note that ICICI life insurance companies offer you two variant
