I have bought 2 term insurance at the same time and declartion of term insurance?

[msgforsunil]

Hi All,

I have bought 2 term insurances one from LIC and one from Aviva almost at the same time and I have not declared that I while applying, since I had none at that time.

a. Should I go ahead and declare the same with my Insurance Company? If yes, then which one should I declare to whom?

b. What is the impact of not declaring my insurances with the the insurance company? And would it cause any problem at the time of settlement(if any)?

Please clarify and your additional thoughts.

Thanks a lot!

Sunil Kumar

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[Rahul]

Its duty of the proposer to declare all facts, he know at the time of making proposal. So I would suggest you to inform both the insurer that you have another term insurance policy from another life insurer. E.g. Aviva Life Insurance -> tell about LIC policy and same way to LIC about AVIVA policy.

[msgforsunil]

Its duty of the proposer to declare all facts, he know at the time of making proposal. So I would suggest you to inform both the insurer that you have another term insurance policy from another life insurer. E.g. Aviva Life Insurance -> tell about LIC policy and same way to LIC about AVIVA policy.

a. Agreed, curious to know, if declaration now would increase my premium amount?
b. Would there be any problem in settlement(if case, if it happens), if one doesn't declare other insurance?

[PolicyWala]

a. Agreed, curious to know, if declaration now would increase my premium amount?

They (insurer) may increase the premium, depending upon there underwriting practice.

b. Would there be any problem in settlement(if case, if it happens), if one doesn't declare other insurance?

The basic principle says that declare all material facts even it decreases risks. So I would suggest please inform your insurer. What happen, I cannot predict. Companies run on rules.
Utmost Good Faith - One of the basic and primary principles of insurance is Utmost Good Faith. It states that insurance contract must be made in absolute good faith on the part of both the parties. The insured must give to the insurer complete, true and correct information about the subject matter of the insurance. Material fact should not be hidden on any ground. This principle is applicable to all types of insurance contracts. Insurance is for protection and not for profit and hence, correct information must be given to the insurance company.