Hello Bajrang,

Basic Principles

If you read our eBook on Term Life Insurance you will realize there is really no way to differentiate between Insurance companies today. The book helps you to focus on the fundamentals from your side and your family - ensuring you will not have an issue at the time of claims. Here are some of the fundamentals we have discussed in the book.

• It is really great that you are reviewing and upgrading your cover regularly based on your needs. I just hope you are doing the right math before buying these additional term insurance policies. Ensure you are buying the right amount of cover based on your needs.
• How much cover do you need: In our eBook we have provided detailed calculations of how you should go about calculating the adequate cover amount required. You can also rely on conflict-free tools like protectmewell.com to calculate the amount of term insurance covers you need.
• Increasing Cover option: Once you have calculated your cover based on any of the two methods we have mentioned here - also ensure you opt for an increasing cover option - this will help you systematically increase your cover every year, and minimize the need for upgrading and maintaining multiple term policies in the future.
• Customizing to your needs: You are choosing the right customization options available across the product's experience - customizing claim payout options depending on your nominees requirements.
• Comprehensive disclosures: Ensure you are providing the right declarations through the journey of buying the policy. You get lazy here, and risk the entire investment and cover for your family.

Should you go for a third insurance company?

• Since you already have 2 term life insurance policies, I would recommend you try and see if you can buy the additional cover from the two companies you are already covered with, this will ensure your family does not have to run around multiple insurance companies at the time of claims.
• In our view, there is no merit in spreading your eggs in multiple baskets (if you are following the principles we have talked about earlier) - unless it is saving considerable amount of money or you are able to avail benefits which are unavailable with the current insurers you are covered with.