Split Insurances

POSTED BY Mitra. A ON August 24, 2012 12:23 pm COMMENTS (2)

Dear Jagoinvestor –

Is it good to split the term insurance between 2 or more than two ? There are lots of discussions
on this over various forums. Now when you’ll submit claims if something happens, you will deliver
all the originial copies to insurance company.How will that happen if you have insurance from two
companies ? You won’t get two copies of orginals ? or will you? Please clarify ?

I thought of splitting plans and now again not sure what to do?
I plan to take Kotak preferred term plan with Riders and LIC Amulya Jeevan. Along with that,
Apollo Munich Personal Accident plan OR Bajaj Allianz Personal Guard.
Require your suggestion.

Mitra. A

2 replies on this article “Split Insurances”

  1. Dear Mitra, At the time of filing the claim, only the copies of the death certificate, Police FIR (if it was an accidental death) & Post Mortem report ‘ll be required by each of the insurer.

    For the given situation – I w’d like to go for a high cover from the cheaper options & a small cover of say 5L Rs. from LIC.

    In case of Personal accident pans or Critical illness plans, again only the copies ‘ll be required & not the originals.

    Yes at the time of filing the claim, the insurer may demand the original to verify the copies with the originals & ‘ll return the originals immediately.



  2. Biswa Singh says:

    Splitting between two is ideal when you consider settlement ratio. You may get term insurance from one company like Bharati AXA with cheaper premimum but the settlement ration may be less. So get one more from a company like LIC where the settlement ratio is more but the premimum will be higher.

    I dont think claming from both the companies should be a problem. I dont think they will take any originals required forever. Definitely they will return your originals so that you can claim with other comapny also.

    Better check the settlemet ratio, premimum amount and please read few reviews before taking any term insurance.

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