Can We Claim Term Insurance from Two Companies?

A family that runs on a single paycheck can buy peace of mind with a term insurance policy. But when some people choose to double it up, you can tell there’s more than one reason. 

Life responsibilities come pouring in — marriage, kids, a home loan. Having two term policies allows you to pay lower premiums than upgrading a single plan later, add different nominees, and enjoy various term rider benefits, (like permanent disability for one policy and critical illness for the other).

However, to make things work with two term insurance policies, you need to know more than the basics. This article will help you understand: 

• How to plan and split your total cover across two different term policies
• Pros and cons of buying term insurance policy from two different companies, and
• How the claim process works with double term insurance

Planning to buy insurance soon? This could be the best time of the year with 0% GST on life & health premiums. Check out our exclusive guide to know how the GST slash affects new policies and renewals. 

Book a free call with Ditto’s IRDAI-certified advisors to know your HLV, split cover smartly, and pick the right term plans for hassle-free claims.

Can We Claim Term Insurance from Two Companies?

According to the IRDAI, there is no bar on the number of term insurance plans one can buy. Yet there are certain prerequisites that insurers care about.

• Full disclosure: Be an honest policyholder and disclose all details, including health condition, history of illness, lifestyle, habits, and existing insurance coverage. Remember, willful non-disclosure can lead to claim rejections.
• HLV: HLV or Human Life Value is a significant determiner for the maximum cover one can get. Various factors come into play when determining your HLV, like age, income, education, and existing coverage. 

Here’s a quick example to understand how underwriters determine HLV and how you can split the total cover across two different term policies. 

Say you’re a 30-year-old man, living in Delhi, with an annual income of ₹10L.

In this case, most underwriters will determine your HLV using the 15×–25× band (higher multiple for lower age due to more number of working years ahead)

So, your total HLV would be ₹2 Cr multiplied by 25x for a maximum coverage of 5 Cr. You can easily split it across two different term insurance plans.

• Term plan 1 of ₹2 Cr till age 65 with a permanent disability rider, protecting against income replacement, and
• Term Plan 2 (taken after major life events like marriage and childbirth) of ₹3Cr for 15–20 years, with a critical illness rider securing your kid’s future and protecting against ongoing debts. 

Not sure whether you need one big term policy or two complementary policies?Try Ditto’s term insurance plan calculator to determine your cover.  

What are the Pros and Cons of Buying Two Term Insurance Plans?

Before you go with two term insurance plans, here’s a quick comparison table with pros and cons for different scenarios.

Ditto’s Advice: For most people, juggling two policies can be complex. Keep it simple with one large cover and split nominees.

Pros & Cons of Buying Two Term Plans From Different Companies

Buying two term insurance plans from two different insurers can sound beneficial, but it has its fair share of pros and cons.

The Pros:

• Rider flexibility: One may prefer having a critical illness rider for 20 years (where the first insurer fits). The same individual may also need a permanent disability rider benefit available from the second insurer.
• For example, HDFC Life’s Click 2 Protect Supreme plan offers an accidental income benefit that pays monthly for 10 years, but its critical illness rider runs only for 15 years. In contrast, ICICI Prudential i protect smart plus plan covers 60 critical illnesses for up to 20 years (longer than HDFC).
• Process diversification: Keeping two policies spreads the operational risk; when one is slow, the other may still pay quickly. Also, Section 45 contestability rule of three years matters. It means once a policy has been in force for more than three years (from issue, commencement, or revival—whichever is later), the insurer generally has limited scope to investigate and deny a claim, except for proven fraud. With proper documentation, older policies often settle faster.

The Cons: 

• Different insurers, different timelines: When needed, the nominee has to file separate claims with each insurer and simultaneously track them.
• Maintaining duplicate set of documents: The nominee needs to maintain two sets of similar documents (like death certificate, policy docs, KYC) for filing a claim. If one insurer has the originals, send certified copies to the other confirming the same.

How Do Claims Work for Two Term Insurance Policies?

Each term policy is a separate contract. That means every nominee is entitled to get the full sum assured from all active policies. Here are a few important points to know when filing a claim for more than one term insurance.

Rules that always apply (regardless of whether you have one or two term insurance policies): 

• There’s no pro-rata pay in term insurance: All active term policies pay the full sum assured on claim. There’s no partial payout.
• Disclosure is a mandate: If one claim is rejected for “material non-disclosure” (like hiding a critical illness, disclosing incorrect age), or clear fraud, all insurers will deny claims.
• Protection Under Section 45 of the Insurance Act: Any claim for a term policy that, over and above three years in force (either from the date of issue, or commencement, or revival, whichever is later), an insurer can’t deny a claim except for proven fraud.  (The onus of proving the same lies with the insurer.)

Here’s how the claim process plays out in practice for two active term insurance policies.

1. The nominee notifies both insurers to generate two separate claim IDs.
2. They complete two claim forms (often nearly identical).
3. They submit the same document set to each insurer. See our complete checklist of documents required to purchase and claim term insurance.
4. If either insurer raises queries, respond and provide additional records (hospital notes, medical history, etc.).
5. Claim settlement time can differ. If one claim settles first, share that confirmation while following up with the other.

Why Choose Ditto For Term Insurance?

Whether you buy one or multiple term insurance policies, it takes solid math to maximize benefits. At Ditto, our IRDAI-certified advisors work smart to make you a confident insurance buyer. 

To date, we’ve helped 7,00,000+ customers with end-to-end guidance, matching their unique life goals to tailored term insurance plans. There’s more than one reason why customers trust Ditto and recommend us to others.

✅ Honest advice – no sales pitches, no commission-driven recommendations

✅ 12,000+ 5-star reviews (Rated 4.9 on Google)

✅ Real claim experience – we've helped customers through actual claims

✅ Backed by Zerodha and other leading fintech companies

Conclusion

You can always hold two term insurance policies from different companies and even claim them together. What matters is how you design each term policy with the right cover amount, goal-based terms, and appropriate term riders. For most people, factoring everything can be tricky. That’s where you need an expert. Book a free call with Ditto for a no-spam consultation and get personalized guidance on term insurance buying.

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