Are multiple insurance plans useful?

“It’s only human to want more”, stated a tagline of an advertisement of a vehicle brand while demonstrating the various features that come with the vehicle. Not to promote the vehicle but I strongly agree that humans are designed to want more and more of everything. Be it clothes, accessories, cars, gadgets, etc. no one is satisfied with having just one of anything. The same instinct drives people to buy multiple policies be it. While it can be argued that the premium outgo increases with every new addition, yet finding a single plan composite in nature is difficult. Some plans promise certain features while others promise other different and unique ones. As such, any investor is spoiled for choice and ends up owning multiple life and/or plans.

The article, however, focuses on the question whether it makes sense to invest in multiple plans or not. The answer is a simple ‘yes’ because having prove useful in multiple ways. Let us see how:– experts always emphasize on insuring oneself adequately so that the amount is sufficient to cover every eventuality. Both life and health plans should be of an amount suited to the investor’s requirements. However, affording such coverage is difficult as high Sum Assured always has high premiums. Buying small plans gradually over the course of one’s life (starting early) is the best solution towards building a strong life cover as affording the coverage becomes easier. Even health plans can be supplemented with good top-up plans or if the employer has provided health coverage, it can be supplemented with another customized plan for a more comprehensive insurance.

Author: Manoj Aswani Manoj is the co-founder and COO of MyInsuranceClub. He has experience in Financial Services, Internet, Insurance and Outsourcing business. He has done his Post Graduation from XLRI, Jamshedpur.. View other posts from author

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