Term insurance cover

POSTED BY gourav nayak ON September 3, 2013 11:18 am COMMENTS (3)


I have a terminsurance of 50 lakh from HDFC.Recently I applied for a 2CR cover term plan from AIVA.I was told by the AVIVA that based on my income I can only take cover worth 1.5Cr.Hence I have applied for 1.5Cr.I have given the details of the 50 lak cover to AVIVA.Can I continue the HDFC term plan of 50 lakh cover.Is there any problem in claim if some one takes more cover as compared to his earning.Please advice.



3 replies on this article “Term insurance cover”

  1. Dear Gourav, when you ‘ll apply for new cover, the insurer ‘ll ask for your past covers & at that time, you w’d have to tell your actual existing covers & this is the point, the over all 20 multiple thing ‘ll come into picture. This 20 times multiple is a common thing across insurers & not an insurer’s individual limit.



  2. gourav nayak says:

    Dear Ashal,

    Thanks for the reply.
    So even if any one company does not give cover more then 20 times of annual income,one can opt for more then 20 times by taking more then one policy from different insurers?
    And that is fine and does not create any problem during claim?


  3. Dear Gaurav, normally insurers in India do not provide cover more than 20 times of your yly income. So in your case, this may be a reason that 2 Cr. cover was not offered to you. You may continue with HDFC term cover along with AVIVA.



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