Spreading your insurance across two insurers can provide you adequate diversification
13-Dec-2016 •Research Desk
I need a term cover of Rs 1 crore. Instead of a single term plan, should I buy 4 of them of Rs 25 lakh each from different insurance providers like hdfc,sbi,icici and lic?
-Arun
Many individuals buy more than one insurance plan, especially while buying a large term cover, to spread their insurance across more than one company. But splitting across four may lead to over-diversification. It can make the claim process cumbersome, should a claim arise. Besides, it may also work out to be more expensive. Therefore, in our opinion, splitting across two insurance companies should be sufficient.
