Is it legal to purchase two different insurance coverages for a single car? In my case my agent forgot to cover bumper to bumper in the policy, so can I enhance or buy another car insurance policy?

Ans: You can purchase a fresh policy with comprehensive coverage wherein own damage risk of the vehicle will also be covered along with third-party (TP) liability cover.

Your existing TP policy will be cancelled once you have purchased the new policy. You may get in touch with your current insurer or opt for another one for this new comprehensive motor insurance policy.

Ans: Hi Madhukar, yes, you can purchase term policies from different insurance companies within your HLV (Human life value) limits. There is no rule that disallows a person from owning multiple term insurance policies.

However, the premiums of both may differ depending on the underwriting process as per the insurer.

Ans: Yes, you can absolutely buy two or more term life insurance policies from different companies. In fact, it can be a good strategy to get the coverage you need. Here's a breakdown of the pros and cons:

Advantages:

• Increased coverage: If you need a high death benefit amount, one policy might not be enough. Having multiple policies lets you reach your target coverage amount.
• Tailored coverage: Different companies offer different features and benefits. You can pick plans from various insurers to get the specific coverage you need, like an accidental death benefit rider on one policy and a waiver of premium rider on another.
• Competitive rates: By shopping around, you can potentially find better rates for your coverage needs from different insurers.

Disadvantages:

• Higher cost: You'll be paying premiums for multiple policies, which can add up.
• More complex management: Keeping track of multiple policies and renewal dates can be cumbersome.
• Potential for claim issues: While unlikely, if you have multiple claims, beneficiaries might need to deal with multiple insurance companies during a difficult time.

Here are some additional things to consider:

• Total coverage amount: There might be a limit (called human life value) on how much life insurance you can get based on your income and financial obligations.
• Disclosure: Be upfront with each insurer about your other policies.

Overall, having multiple term life insurance policies can be a good strategy, but it's important to weigh the pros and cons carefully. If you're considering this route, talk to a financial advisor to determine the right amount of coverage and find the best plans for your needs.

Ans: It's sensible to look for a higher Personal Accident (PA) cover, especially if you want ample financial protection. Yes, taking multiple policies from the same or different insurers is indeed allowed, provided you disclose all existing policies when applying for new ones. This approach lets you reach your goal of Rs 75 lakh coverage.

Here are a few points to consider:

Disclose All Policies: While taking multiple policies, always inform each insurer about your existing PA covers. This ensures transparency and helps avoid complications at claim time.

Avoid Policy Duplication for Benefits: Ensure that any specific benefits or riders you need aren’t duplicated across policies if they won’t provide added value, as this can increase premiums without enhancing coverage meaningfully.

Check Aggregate Claim Limits: Some policies have aggregate limits on certain types of claims. Ensure that your policies don’t collectively restrict your total coverage for critical incidents, like total disability.

Consider Family Coverage if Needed: Some PA policies offer family coverage options, which might be more efficient than individual policies.

Multiple PA policies can be a practical strategy to get higher coverage. You can proceed with this approach confidently, knowing that it aligns with common practices and provides the protection level you desire.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment