Asked on 01 Apr 2019
One of the reasons that i have for having multiple term life plans is due to my biannual review of my insurance needs. So my term life plan is like stacking up to fit my lifestyle and coverage needs as i move along my life stages.
However, there is no necessary need to buy from multiple insurance company unless you are being rejected when requesting for increase coverage. But personally i do go for different insurance company as i feel the need to diversify. The risk is low, but i just wanted to do it still just to feel safe lol.
As Hariz has mentioned, for the same total sum assured, you are better off getting one policy instead of 2 policies as the premium does not increase in a linear manner. However, if you are unable to purchase a higher sum assured in the 1st policy due to affordability, then you should still consider getting a 2nd policy to get yourself adequately covered.
The point of insurance is to ease your financial difficulties due to unfortunate circumstances. There's no point claiming the 2nd policy after the first claims as you can only die once, if we are talking about death coverage. As the information you provided is incomplete, you will have to provide more information in order for us to do a more depth analysis.
Certain insurance such as Multipay CI insurance allows you to have to more than 1 claim. You might be better off cost-wise getting one of such plans.
I will not worry too much about getting two life insurance from different companies as the insurers in Singapore are pretty stable financially. Moreover, there are laws put in place to protect consumers, so if you are looking to diversify your risk, I would say the risk of an insurance group collapsing is perhaps the least of your concerns.
Now if you are unable to decide what plans work better for you, you might want to just engage the service of a financial advisor who is able to tailor solutions according to your needs.
You don't want to be paying for unnecessary insurance, right?
In the event of a claim, you would claim from all your insurance plans, so it wouldn't make sense to...
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