Hi If I have for example death coverage 5 mil for insuer A and 5 mil for insurer B. In event of death can i claim 10 mil or there is a max limit per person say like only claim 7mil etc.

Hi anon,

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There is an overall cap for pure death coverage.

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This is a reason why you are always required to declare existing and pending/concurrent applications when you are buying insurance,

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Total carrying (insuring) capacity of the re-insurers is definitely 8 figures and above but it does depend on which reinsurer your insurance company works with.

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If insurer A and B work with the same reinsurer who has a maximum limit of $7M, you'll be declined the extra $3M coverage.

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If insurer A and B work with different re-insurers, you'll probably get your $10M coverage.

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Of course, this assumes that financial underwriting is not an issue (i.e. the sum assured is justified).

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Intentionally not declaring is not going to help as there are only so many reinsurers in the market (and they talk to each other), and an interesting case you may want to read that happened in Singapore whereby claims were not paid because of under-declaration happened here:

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https://www.elitigation.sg/gd/s/2021_SGHC_130

Death coverage is not on reimbusement basis. your scenario simply means you have a total coverage of 10mil, so you will be paid 10mil when you die.