What is second life insurance policy?

Table of Content

1. Enhance coverage

2. Keeping up with financial goals

3. Creating wealth

4. Tax Relief

Buying a life insurance policy is often not on the priority list for us. But think again, do you not spend money on food, clothes, travel, buying a house or car? Then why think so much while buying a life insurance cover? After all, an insurance cover is the best safeguard that you can opt for you and your loved ones. It is that one means of keeping your family free of troubles in the absence of you - especially, if you are the sole bread winner.

Now think if you have two life insurance covers? No, we aren't kidding. We're offering you an insight into what exactly is a second life insurance policy and how it can help you more.

Enhance coverage

Be it health insurance or life insurance, both have to be chosen keeping in mind the current situation in the family and foreseeing what might entail in future. In health insurance, the expected medical cost determines the coverage you require while life insurance estimates the value of your life. Enough coverage should be opted in order to compensate the economic value of the life of the breadwinner. A second life insurance policy will help in supplementing the coverage level you already have from your first policy.

Keeping up with financial goals

All life insurance plans are customized to meet the financial needs of one's life. For instance, term plans fulfill the requirement of income protection, child plans help in securing the child's future, Unit linked plans help in wealth creation while pension plans help in retirement planning. So, having one might not provide a complete solution to your financial goals. This is where a second policy would help.

Creating wealth

Life insurance products are not just meant for financial security but can be an attractive avenue for investment if one chooses the right plan. ULIP plans by HDFC provide the dual benefits of wealth creation through market-linked growth and insurance protection. A ULIP (Unit Linked Insurance Plan) can be a good investment option and be bought in addition to your existing life insurance plans.

Tax Relief

That you will enjoy tax redemption is obvious. Up to Rs.1.5 lakhs - premiums -- are exempt under Section 80C and any benefit received from the same is tax-free under Section 10(10D).

Buying a second life insurance policy is neither confusing nor a bad idea. Reap the benefits by adding more policies in your name. So, study the plan, find out if it meets your financial goals and buy it. Check out HDFC Life and choose the right investment plan for a secured future.