Why You Should Consider Having More Than One Term Insurance Policy

Flexibility in Policy Duration

Not all financial responsibilities last a lifetime. For example, your child’s education expenses are time-bound, and your home loan may be for 15-20 years. With multiple term insurance policies, you can customize durations according to specific needs.

• One policy can be designed to cover your loan repayment period
• Another can cover until your retirement age
• Yet another can extend until your children become financially independent

By customizing policy durations, you avoid overpaying for unnecessary coverage.

Claim Settlement and Risk Diversification

This might surprise you—insurance companies can reject claims, especially if there’s a lapse or discrepancies. If you have only one policy, the financial future of your dependents hangs by a thread.

With multiple term insurance policies, you reduce the risk of total rejection. If one claim gets delayed or rejected, others can still come through. Jio Insurance Broking works with trusted insurance partners to ensure claim reliability, but having a backup never hurts.

Premium Affordability and Budget Management

Buying one huge policy can be expensive upfront. Instead, by spreading your cover across two or three policies, you can start small and scale up as your income grows. This also offers the advantage of managing premium payments more flexibly, rather than being locked into a high fixed annual premium from the start.

Platforms like Jio Insurance Broking help you compare and choose policies that suit your budget at every life stage.

Tax Benefits Stay Intact

One of the key advantages of term insurance is the tax benefit under Section 80C of the Income Tax Act. Whether you have one or more policies, the premium you pay (up to ₹1.5 lakh annually) qualifies for deductions.

If structured smartly, having multiple policies can help you optimize this limit over different financial years.

Option to Drop Policies Later

Let’s say you buy a term insurance policy for ₹2 crore at 30 and another for ₹1 crore at 40. By the time you turn 60, if your financial situation is stable and liabilities are reduced, you may choose not to renew or continue one of the policies.

This gives you control over which policy to retain, based on ongoing needs, and saves on premium payments in later years.

Things to Keep in Mind

While multiple term insurance policies offer numerous benefits, here are some tips to consider:

Always disclose existing policies when buying a new one. Non-disclosure can lead to claim rejection.

Keep all your nominees informed and document policy details clearly.

Use digital platforms like Jio Insurance Broking to compare features, premiums, and claim settlement ratios before purchasing.

Secure Smart, Not Just Safe

In a world where financial uncertainties are real, one-size-fits-all no longer applies—even to term insurance. Having multiple term insurance policies is not just a safeguard, it’s a smart financial strategy. It offers flexibility, increased coverage, risk diversification, and better alignment with your life stages.

If you’re unsure how to go about it, Jio Insurance Broking can guide you with tailored advice and help you choose the best policies that match your needs and lifestyle.

Think ahead. Plan smarter. Insure wisely—with Jio Insurance Broking.