The insurance business in India isn’t just growing, it’s also becoming more sophisticated in terms of product offerings. To help readers keep ahead of developments in this business, Mint features a Q&A on insurance every Monday.

I am a 27-year-old advertising professional. I have bought a term insurance plan with an annual premium of Rs11,500. Is it cost-effective to have more than one life insurance policy?

When an individual is planning to invest in a life insurance plan to cover the entire risk, it may be prudent to break the amount to be invested into smaller units. Though this may marginally increase the cost of insurance, the benefit may offset this cost.

Having multiple policies allows you to discontinue some insurance plans while continuing others in case you face a financial shortage.

Also, it is advisable to review your insurance needs on a regular basis. Else, you may realize that you are under-covered or ill-prepared for the eventualities of life.

I am a 30-year-old man and want to invest in a life insurance plan. Is there any way I can receive regular money during the tenure of the policy?

You can invest in a money-back plan. A traditional money-back plan can help you plan effectively for critical milestones. It not only covers your life, it also assures you a certain percentage of the sum assured as cash inflow at regular intervals.

The risk cover continues for the entire policy term in spite of the instalments already paid. If you outlive the policy, the balance sum assured is paid back to you. This may be suitable for you if you plan to use the funds received from the policy for your future anticipated needs.

Readers are welcome to write in with their queries to askmint@livemint.com. The questions will be answered by senior executives from leading insurance firms.

This week’s expert is Rajesh Relan, managing director, MetLife.