I have one life insurance policy from LIC, India. I want to increase my insurance cover, so discussing with my insurance agent. I am very keen to buy another life insurance from Pvt. Life insurance company. But my agent told me that one cannot buy two insurance policy from two insurance company. If you want to buy another policy, you can only take it from LIC. Is he right?
Yes you can. But always fill the details of previous insurance or policy/cover you have in the proposal form.
The life insurance risk cover is provided to you, based on your current income. As a standard, a life risk cover of 20 times annual income is given/accepted by insurance company. For example – if your income is 5 Lacs, and you already having life insurance cover with your previous policies is 60 Lacs, then only 40 Lacs cover may be given/accepted in your new proposal/policy.
No, He is wrong. There is no restrictions on number of policies one can take. You are free to take any nos of policies from any insurance company. You can take insurance for any amount as far as you have paying capacity and with in maximum insurance limit as mentioned by Mrinalrulz.Quote:
Originally Posted by Girish
Each time you fill a new proposal for a new life insurance policy, you must mention your previous insurance policy details. Failure to mention this, can be held valid for an insurer to reject a claim.