Can I claim from more than 1 Life Insurance Policy?

We need to know the benefits that are provided by the life insurance policy.

Generally for medical bills, the coverage is on a reimbursement basis. Accordingly, the claim limit is up to the bill amount.

Example: You have 3 insurance policies that cover for medical reimbursement and the bill is $100k. In this situation, you can claim from one or more policies, but the max payout will be $100k.

On the other hand, for life coverage, e.g. Death, Total & Permanent Disability, Critical Illness, the coverage provides a lump sum payout. In this situation, you may claim from all the relevant policies, up to the insured amount.

Example: You have 3 life insurance policies that insure you for $100k each. Upon the covered event, you can claim 3 x $100k = $300k.

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There are two types of insurance payouts.

1. Reimbursement insurance.

This would pay out up to 100% of bills. Insurance under this category would be hospitlization insurance and medical reimbursement insurance. You can claim from multiple insurers, however the limit of the claim is up to 100% of the bill.

2. Event Trigger Insurance

This would pay out cash upon event trigger, such as death, disability or critical illness. There is no limitations to how many insurers you can claim from and no limit to how much you can buy.