Don’t Be Confused While Buying a Second Life Insurance Policy

Life Insurances 223 views

Many of you will surely agree on the fact that Indians never like one of anything, and always like to have more in life. Yes, whether it is food, clothes, cars they drive, or even the smartphones they own, they want variety in everything. While on the other hand, when it comes to life insurance, most of the people shrink people even from the name itself. There is no denying on the fact that majority of Indians go uninsured, even the little portion that is insured are not having the enough coverage. Well, call it the psychological notion or disliking towards the premium outgo, buying a life insurance policy or plan is either put off for a long time or invested in with just a purpose of saving the tax.

Thus, in a dismal situation, mentioning about a second life insurance policy will surely voted down as the relevance of second policy is generally lost. Well, what about you? How many life insurance policies you have? And, if you have one, what about going for a second one?

When it comes to buying a second life insurance policy, it is nothing to be afraid or confused on because it is beneficial in various aspects. In order to put your mind to ease, here are some valid reasons listed below describing why you should buy a second life insurance policy. So, for more clarification, read on further:

Supplementing Your Coverage

There is no denying on the fact that having a sufficient coverage is really very crucial in case of life insurance. In fact, in case with health insurance,  the expected medical cost is actually the basis of determining the required coverage. Whereas in case with life insurance, one can estimate the value of his life. A cover should be selected that is optimum enough to compensate the economic value of breadwinner's life, and such a low coverage is not good. It would not be wrong to say that only a handful of people are reasonably insured while many having the insurance are under-insured. However, as such the second life policy would act like a helping hand in supplementing the coverage level which you already have from your first policy.

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Meeting Your Financial Goals

These days, you will find plenty of life insurance plans meticulously designed to fulfill the different financial goals of one's life. Yes, you have term plans that fulfill the need of income protection, child plans that secure the future of child, unit linked plans ULPs give their contribution in wealth creation, and last, but not the least pension plans that help in retirement planning. Thus, the only one policy that you have will not serve the complete solution to your financial goals, hence you need other policies for the same.

For Wealth Creation

When it comes to describing about the life insurance products, they are not only pertinent in offering the financial security, in fact they also provide you with an attractive avenue for the investment, if you prefer to choose a right plan. Unit Linked Insurance Plans ULIPs give you the dual benefits of wealth creation via market-linked growth along with the insurance protection. So, if you are still thinking that your policy only gives you the insurance, you need to think twice on that. Moreover, it also serves as an ideal investment instrument, and can be bought in addition to your existing life insurance policy.

Tax Relief

How can one forget not to mention the much-needed on tax exemption which most of the insurance providers provide. Moreover, the premiums paid up to Rs. 1.5 lakh are exempt under Section 80C, and the benefit received is also considered as tax free under the Section 10(10D). However, though the inherent tax relief should not be the only consideration when it comes to buying another policy of life insurance as it surely have an influence on your buying decision.

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Hence, buying a second life insurance policy is not a confusing or a bad deal. Yes, as you would only get the benefits from adding more policies in your name. More to the point, benefits like optimal coverage, fulfillment of financial goals, investment avenue, and the tax exemptions come with a second life insurance policy. So, there is no need to get confused when your very dear broker advises you to invest in another plan. You just need to study the plan, do some research to find out its relevance in fulfilling your financial goals, and then buy it without any hesitation to avail the benefits in the long run.

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