Should I buy a second term plan?

Many people think investing in an insurance policy is just too much of a hassle and not their cup of tea. Some literally get jitters the moment someone discusses about insurance or investment or something similar to this. While there are a few who feel insurance is not required at all. No matter what the reason is, this these thoughts of people either leave them uninsured or underinsured. Life insurance is one such topic that may be many feel like avoiding because the thought of death itself makes them uncomfortable. But, death is immortal and uncertain. We all have to go through it one day or the other. During situations like these, the thought of a second term insurance would actually sound outright ridiculous, right? Or maybe not so much.

With so many questions wandering on your mind, one such question may wreck your nerves off thinking, why should I even invest in another insurance policy while I already have one?Simply put, it might turn out to be a waste of money.

But, are there any valid reasons for investing in a second term plan?

Explained here are three important factsthat would make you actually buy a second term insurance.

1. What is your age?

Experts suggest that you should ideally have life coverage till you are 65 years old. However, if you fall in the age bracket of 35 to 40 years to opt for a policy with a term of 30 years and therefore a single term insurance would suffice. Besides, if you are yet to touch 35 years of age, things get a bit more interesting. Today, there are so many life insurance companies that have a cap on the number of years they permit for term insurance. In short, if you are still in your 20s, then a 30 year term insurance would only be beneficial till your 50s and not the desired age of 65.

Therefore, it would make sense to purchase a term insurance plan from 20 to 50 years and a second insurance plan from 35 to 65 years.

This would help you by offering a strong financial cushion when you reach the critical phase of 35 years and above. This is because, at this age a couple of your responsibilities such as like children education, home loans etc. would keep you financially piled up. Therefore, your thought of opting for a second term insurance plan would make utter sense.

2. What about your beneficiaries?

Today due to the trend of nuclear families, there are higher chances of you supporting more than one person all your lifetime. The concept may also be applicable in case of insurance! At times, many of them opt for separate payouts for their spouses and parents. Besides, if someone has got married more than one time, may buy more than one policy to keep children from both the marriages financially secure.

Therefore, having more than one term insurance plan would make sense if you feel your beneficiary might not be able to take care of your other family members.  You might think this a little weird at first, but trust us, you can certainly give it a thought and it will definitely make sense.

3. Do you have any other commitments?

In case you have a lot of outstanding amount of loan or credit card to be paid off to one or more creditors, having a second term insurance plan would work out perfectly for you.

Imagine what would happen in case of your untimely death. The creditors would make the life of your family member’s hell by forcing to make the repayments of the loan or credit you had earlier taken. Since there is no regular income flow, how would your family members cope-up with this financial gap? So, having more than one term plan would make sure to cover all your pending credits through the first insurer and the second one would take care exclusively for your family.