Should I split my term plan across four insurance companies? | Value Research Spreading your insurance across two insurers can provide you adequate diversification
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Should I split my term plan across four insurance companies?

Spreading your insurance across two insurers can provide you adequate diversification

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.


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