Can I get multiple PA policies for greater cover?

Ans: Having multiple health insurance policies from different companies is definitely possible and can provide additional or more comprehensive coverage. It can also serve as a backup to an existing health insurance, and can reduce the risk for those with pre-existing conditions.
However, it is important to note that having more than one plan does not mean that you get reimbursed twice for a medical treatment. Even when you have more than one plan, the total amount that will get reimbursed at the time of a claim will not exceed 100% of the treatment cost.

It’s great that you already have an ICICI Lombard Complete Health Insurance policy with an annual sum insured of Rs 20 lakhs. If you are looking to increase the coverage, you can consider purchasing another policy from a different company. However, it’s important to compare the benefits and costs of the policies before making a decision.

If you are satisfied with the coverage provided by your current policy, you can continue with it. Having one complete health insurance policy from one company is good enough as long as it provides adequate coverage for your needs.

Ans: Given your current financial situation and insurance coverage, here's a breakdown of your existing coverage and suggestions on whether you need to increase your sum assured or alter your policies:

Current Coverage:
Term Insurance: ?1.5 crore
Traditional Insurance: ?5 lakh
Medical Insurance: ?15 lakh
Analysis:
Term Insurance
Current Coverage: ?1.5 crore
Purpose: Term insurance primarily serves to provide financial security to your dependents in case of your untimely demise.
Current Situation: As you are single with no dependents or financial commitments, ?1.5 crore seems adequate for now. However, this amount should be reviewed periodically as your life circumstances change (e.g., marriage, children, significant asset purchases).
Traditional Insurance
Current Coverage: ?5 lakh
Purpose: Traditional insurance policies (endowment, whole life, etc.) combine insurance with a savings component. However, the insurance coverage is typically lower, and the returns are modest compared to other investment avenues.
Current Situation: ?5 lakh is quite low in terms of coverage, but since it’s a traditional policy, the primary goal might be savings rather than pure risk coverage. Given that you are a minimalist and have a substantial term insurance cover, this might suffice, though you could reconsider future contributions depending on the policy's returns and your financial goals.
Medical Insurance
Current Coverage: ?15 lakh
Purpose: Medical insurance covers hospital bills and other medical expenses.
Current Situation: ?15 lakh is generally sufficient for most medical emergencies in urban India. However, given the rising cost of healthcare, you might want to consider adding a super top-up policy to increase your coverage at a lower cost.
Recommendations:
Term Insurance
Maintain or Slightly Increase: Your current coverage of ?1.5 crore seems adequate, but if you foresee significant financial responsibilities in the future (like marriage or starting a family), you may consider increasing it slightly, say by another ?50 lakh to ?1 crore, to keep pace with inflation and future liabilities.
Traditional Insurance
Reevaluate: Traditional insurance policies are not typically the best for maximizing returns. If your primary goal is to save and grow your wealth, you might want to focus more on pure investment products (like mutual funds, PPF, etc.) rather than increasing contributions to traditional policies. Consider surrendering or converting this policy depending on its terms and the financial implications.
Medical Insurance
Consider a Top-Up Plan: While ?15 lakh should suffice for now, healthcare costs are rising rapidly. You might want to consider a top-up or super top-up plan that can provide additional coverage (e.g., ?10-15 lakh) for a relatively low premium, ensuring you are well-protected against major medical expenses.
Overall Premium Commitment:
Given that you are a minimalist and have no financial dependencies, you should focus on maintaining a balanced approach:

Avoid Over-Insuring: Since you currently have no dependents, over-insuring might lead to unnecessary premium outflow, which could otherwise be invested for growth.
Focus on Investments: With your minimalistic lifestyle, channeling more funds into savings and investments might provide better returns over the long term, enabling you to meet future goals like retirement or potential family responsibilities.

Your current insurance coverage seems adequate for your current situation. Consider a slight increase in term insurance, add a top-up to your health insurance, and reevaluate your traditional insurance policy. Focus on growing your wealth through investments rather than significantly increasing your insurance premiums at this stage. Regularly review your coverage as your life circumstances change.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Taking loan for investment can never be justified under any circumstances.

It is better to swallow one time loss out of surrender of traditional policy and invest the balance surrender value in MFs for capital appreciation.

Your loss may be more then covered by the gains accruing out of mutual fund investments over a period of time.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

Happy Investing!!

Ans: Hello;

A person may take multiple term insurance policies but he needs to inform the other insurer about his existing life insurance policies.

This will ensure that the insurer provides you additional insurance in line with your increased requirement and also claims are not dishonored later for suppression of facts.

Also people need to understand that insurers do a Human Life Value(HLV) Assessment. Human life is invaluable and no amount of money or other riches can compensate for the loss of it.

HLV tries to predict your earnings over your lifetime.

And since insurance is a protection intended to make good the financial damage caused due any loss or mishap,
no matter how much life insurance you buy, insurers will assess your HLV and make claim payment in accordance with the same irrespective of sum assured.

Do not be under the impression that if you hide your previous term policy from the new insurer then they won't know about it.

The way we can find out everything about insurance companies online similarly with a simple search they may get all details pertaining to client's financial activities including of course life insurance policies.

Nobody would want their family to run long drawn legal cases with insurance companies behind them.

Therefore it is best to keep it plain and simple with one adequate term insurance cover.

Many companies offer term life cover in which you may enhance the sum assured at certain life stages.

Benefit is you get enhanced cover for increased responsibilities without going through underwriting check again.

Do a study of claim settlement ratio over a span of years, capital adequacy, reputation, cost, riders on offer and go for the one which suits your requirement or else consult an insurance advisor.

It is better to buy term cover with accident benefit and critical illness riders.

Best wishes;

Ans: You’ve taken thoughtful steps for your family—coverage, investment, and planning. That’s a strong start. Now let’s review everything in a 360-degree way.

Reviewing Your ULIP Coverage

You hold three ULIP plans, each with Rs 50L sum assured

Premium term is 8 years; policy term is 25 years

You’ve completed only two quarters of payments

ULIPs combine insurance and market-linked returns

They come with charges—fund management, mortality, admin

These charges reduce investment growth significantly

Your early-stage payments mostly go to charges, not investments

This means low actual gain so far

Coverage Adequacy Analysis

Sum assured totals Rs 1.5 crore

That may seem high, but market ULIPs often pay low returns

Term insurance offers higher cover at low cost

Example: You may get Rs 2–3 crore cover for less premium

ULIP cover might look big but gives weak real benefit

Should You Replace ULIPs with Term Insurance?

Term insurance gives pure risk cover only

For same cost, you can get significantly higher sum assured

Funds under ULIP are underperforming compared to active mutual funds

Term plans have no investment bias, only insurance

Investors often regret early ULIPs due to poor returns and lock-in

A term plan plus separate investing is more efficient

What You Could Do

Continue ULIPs only if surrender value is low

Consider surrender after complete understanding of charges

Use the freed premium to buy term insurance

Use separate investments via actively managed mutual funds

Health Insurance Review

Your Star Health policy covers Rs 3 lakh per year only

Family of four – that’s insufficient

Costs of hospitalisation, surgeries, daycare exceed this easily

Health inflation is typically 10%+ per year

This cover will exhaust quickly

You need at least Rs 10 lakh cover for each adult, Rs 5 lakh for kids

Add top-up or super-top-up cover for full peace of mind

Your Investment Strategy

You invest Rs 15–18K monthly via regular SIPs through advisor

That’s good disciplined investing

It shows long-term goal-building

But are these actively managed funds?

Regular plan via MFD with CFP support is better

You get advice, review, and rebalancing

Make sure these SIPs match your goals: education, retirement, contingency

The Pitfall of ULIP as Investment

ULIP returns are typically moderate, ~4–6%

They fall short against inflation and market-linked gains

Charges in early years eat returns

Surrender costs may reduce fund value

Lock-in period limits liquidity and flexibility

A mixed portfolio with active mutual funds gives better results

Mutual funds can deliver 10–14% returns over long term

Building the Right Insurance & Investment Mix

Let’s structure your finances smartly:

Insurance Cover

Term insurance for you and spouse with Rs 2–3 crore each

This is affordable and ensures financial security

Health Cover

Individual health insurance for family with at least Rs 10 lakh

Add a super-top-up of Rs 10–15 lakh for emergencies

ULIP Evaluation

Review performance and charges

Decide whether to continue or surrender

Consider switching to term + active investing

Savings & Goals

Continue SIPs, focus on actively managed funds

Educate children’s school & college needs

Build contingency/emergency fund amounting to 6–12 months expenses

Long-term Goals

Education fund for two girls

Retirement corpus for you and spouse

Use active funds, not index funds or ULIPs

Why Actively Managed Regular Funds Are Better

Fund managers actively buy and sell to optimize returns

They can exit underperforming sectors

They manage risk during volatile periods

Regular plans include expert guidance and rebalancing

They match your financial timeline and risk capacity

You avoid decision paralysis and behavioural mistakes

Why Not Index Funds or Direct Plans

Index funds mimic benchmarks—they don’t outperform them

Their downside protection is limited

They continue to hold weak sectors by design

Direct funds offer no support or advice

You may panic sell or buy wrong at the wrong time

CFP-backed guidance ensures discipline and clarity

Action Plan You Can Follow

Review ULIPs: charges, terms, lock-in, projected value

Calculate surrender value after 2 years payments

Compare alternative monthly premiums in term insurance

Buy a solid term plan and stronger health cover

Continue or reallocate your SIPs with CFP support

Build goal-wise separate funds for education and retirement

Keep track and revisit your financial plan every year

Final Insights

You’ve taken steps in insurance and investing—appreciate that

ULIPs are often costly and ineffective for growth

Term insurance plus actively managed funds offer clearer benefits

Health insurance needs to be strengthened

Your SIP investments are valuable if reviewed and aligned with goals

With CFP-backed planning, you can balance risk, liquidity, and returns

Gradual shifts now can build a solid foundation for your family's future

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment