I have two term-insurance policies from two different companies—one for Rs 15 lakh and the other Rs 25 lakh each. In case of my demise, will both these policies payout the claim?
Sunil Nair, Kochi
There is nothing to worry about having two life insurance policies as each policy is an independent contract. Irrespective of the number of policies and the sum insured under them, on the death of the life assured, the policies pay as per the terms and conditions of the respective policies. Human life is considered invaluable, so a number of policies can be issued in the name of one person. In your case, on the death of the life assured, your legal heirs will be entitled to claim Rs 40 lakh, the sum total of both the policies. As a precautionary measure, do inform your insurer when you take a new life insurance policy about the existence of other policies that you may have.
