Term insurance can be one of the simplest forms of an insurance product. The primary objective of a term insurance plan is to offer financial protection to your loved ones. For the security of your family, term insurance can provide a monetary payout called the death benefit. Since many of you might feel that purchasing a term plan only for death benefits can be expensive, many insurance companies have launched term policies with survival as well as death benefits under the same plan.

As a policyholder, you can own two term insurance policies at once. There can be times when you might think your current term coverage can be inadequate to suffice the financial needs of your loved ones. Under such a scenario, you can buy an additional term insurance policy to support your family members financially. When you own two insurance policies, you might not have the stipulation to nominate the same person for both your policies. Apart from that, you can receive many other term insurance benefits as mentioned below if you have two policies:

• You can plan your milestones

Your life can be divided into multiple milestones. Based on your current milestones, your goals and coverage needs can vary. For instance, if you are married, you might have financial dependents, such as your spouse and your children. Since you might have to look after their requirements, you might need more coverage. As a policyholder who owns two term insurance plans, you can plan your milestones based on the coverage and the financial needs of your dependents. With multiple term policies, you can fulfil goals such as your child’s education, plan a dream wedding for your children, buy a new house, and so forth.

• You might not have to worry about claim rejection

As a policyholder, you might fear the rejection of claim at the time of a crucial need. However, you might not have to worry about claim rejection if you have multiple policies in your hands. If your insurer does not approve the claim under one of your term policies, you can settle the claim under the second term policy that you own. With two term insurance policies, you can ensure that the members of your family are well-protected during contingencies such as death, physical disability, loss of income, critical illness, and so forth.

• Your family can obtain the death claim

Under term insurance, your nominees can secure their future with the help of the death payout that they receive in your absence. The nominees can choose to get the death payout quarterly, monthly, half-yearly, or annually. Typically, your insurer can offer the death payout based on the selected duration as well as the terms and conditions. However, you should disclose the information of your two term policies to your insurer if you wish to protect your loved ones with the death benefits. In case you own three policies, mention the details of the two previous term policies in front of your insurer.

Although it can be acceptable to own two term insurance policies, there might be specific restrictions. Ideally, the sum assured amount of both the owned term insurance policies should go beyond the Human Life Value (HLV). After you provide your insurer with a proposal, it might go through the underwriting procedure. During the process, your insurer can evaluate your health-risks to determine the premium as well as sum assured value.

To conclude, multiple term insurance policies might require an additional premium. Hence, you might be unable to afford two term life insurance policies at once. However, you can purchase two term insurance policies if the benefits of both these policies eradicate the stress of affording the premium. Although there might not be any restriction to the number of term policies you can own, you should keep your insurer informed about the same. Use a term insurance premium calculator to check your premium estimate.