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Can We make claims under Two Term Insurance?


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Written ByPalak Bagadia
AboutPalak Bagadia
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Palak Bagadia, Associate – Digital Marketing at Bajaj Allianz Life, with experience spanning content and performance marketing, recruitment, employee engagement in the BFSI industry.
Reviewed ByRituraj Singh
AboutRituraj Singh
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Rituraj Singh,With over 6.5 years of experience in the insurance industry, Rituraj Singh, Manager- Product & Brand Marketing at Bajaj Allianz Life Insurance overlooks new product launches, compliance, and brand projects, leveraging artificial intelligence and technology to enhance outcomes.
Written on: 7th July 2024
Modified on: 7th July 2024
Reading Time: 15 Mins

Can a Claim for Multiple Term Insurance Plans be made?


A term insurance policy is a financial security tool which covers the risk of premature demise and provides financial assistance to a bereaved family. Given the cost-effective coverage offered by a term plan, many individuals buy multiple plans for higher coverage. But can their nominees make a claim from multiple term insurance plans?

The answer is ‘Yes’, they can!

One can make a claim under two or more term insurance policies. Each policy would pay the corresponding death benefit in line with the terms and conditions of the policy1.


Conditions to Fulfil for Claiming Term Insurance Plans


To claim a term insurance policy, here are a few conditions that should be met –

  • If you have multiple policies, the insurance companies should be informed of the existing policies when you are buying another plan2.
  • 2. The claim is usually payable in the case of death of the life assured during the policy tenure.
  • 3. The nominee is required to file a death claim. To do so, the nominee should fill out and submit the claim form along with the relevant documents like the policy bond, identity proof, bank details, etc.
  • 4. In the case of accidental deaths, a police FIR is also required for claim filing3.

Please note, these conditions may vary from insurer to insurer. You may want to check with your insurance provider for details.


Benefits of Claiming Multiple Term Insurance Plans


Getting a death claim from multiple term insurance plans can prove beneficial. Here are some reasons why –

1. Higher financial payout

The total death claim received from all active term insurance plans becomes a considerable amount. The family can receive higher financial aid and use the funds for their needs.

2. Helps in goal fulfilment

The enhanced benefit received from multiple term insurance plans allows the assured’s family to fulfil their financial goals which the assured was not able to do due to unforeseen event. The family can buy a vehicle or a home, plan for the children’s higher education and the spouse can also use the death benefit for retirement planning.

3. The benefit is tax-free

The death benefit received from a term insurance policy is tax-free4. The family, thus, receives the full benefit which they can use for any financial obligation.


Things to Keep in Mind Before Opting for Multiple Term Insurance Plans


If you are thinking of buying multiple term insurance plans, here are some things that you should remember –

  • 1. The aggregate premium payable for the multiple policies should be affordable so that you can keep the coverage active in all plans.
  • 2. The total sum assured should be optimal enough to provide sufficient financial security to your family. While underinsurance is bad, over-insurance is unnecessary and causes additional premium outgo. You can use the online term insurance calculator to work out
  • 3. Look for plans that offer the longest possible coverage so that you can get covered for longer duration.
  • 4. From the second term insurance policy onwards, inform the insurance company of your existing term plans.2 At the same time, it is also equally important to not conceal any facts from the insurer at the time of applying for the policy in order to avoid claim rejection later on.
  • 5. Put an auto debit mandate on your bank account so that the premiums of the multiple plans are automatically paid when due and you can avoid missed premiums.




Having multiple term insurance plans may be beneficial since you can step up the coverage to suit your growing expenses/debts/liabilities or changing life goals and life stages. Moreover, you can get a more inclusive scope of coverage through inbuilt and optional riders, if the plan supports. However, the aggregate sum assured permissible under multiple term plans may be restricted considering your annual income. You may want to check with your insurer before buying the plan.

So, buy multiple term plans, if needed, and understand how to claim from these policies. Also, disclose the existence of all the plans so that the chances of claim rejection are reduced and the insurance company can easily process your claims.




1. Will having multiple policies affect the premium I pay?

Usually, having multiple term insurance plans does not affect your life insurance premium because the mortality risk doesn’t increase.

2. How do one initiate the claim process for each policy?

The nominee should fill out the claim form and submit it to each insurance company to initiate the claim process after the life assured dies.

3. Do I need to inform one insurance company if I have policies with others?

Yes, it is important to inform one insurance company of all the policies that you have with other life insurance companies. This helps the insurer assess whether your aggregate sum assured is suitable to your financial needs and affects underwriting.



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~Tax benefits as per prevailing Income tax laws shall apply. Please check with your tax consultant for eligibility.

The above information is for general understanding and is meant to educate the general public at large. The reader will have to verify the facts, law and content with the prevailing tax statutes and seek appropriate professional advice before acting on the basis of the above information. 


*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions

Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

Terms & Conditions

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%%Above illustration is for Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V03) considering Male aged 25 years | Non-Smoker | Policy Term (PT)– 30 years | Premium Payment Term (PPT) – 30 years | Sum Assured opted is Rs. 1,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 6,238. 2nd Year onwards premium is Rs. 6,659. Total Premium Paid is Rs. 1,99,349 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly installments (Lumpsum Payout Percentage : 45, Income Payout Percentage : 55) | Premium shown above is exclusive of Goods & Service Tax/any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only. This is inclusive of all the discounts mentioned above.

##Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

@Term Insurance plan bought online directly from Bajaj Allianz Life Insurance has no commissions involved.

^^The Return of Premium amount is total of all the premiums received, exclusive of extra premium, rider premium and GST & /any other applicable tax levied, subject to changes in tax laws
Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

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