You should not depend on only one term insurance plan. For safer side, you should have minimum two running term insurance plan from different insurance providers.
Taking multiple term insurance plans is legal in India. If you select only one insurance plan with very high insurance amount, there may be chance that at the time of claim, insurance agency may deny the claim payment with giving some of the clauses. Many insurance companies mostly new one in India are having very less Claim settlement ratio (in the order of 64%). They are rejecting the claim application by giving various types of reasons. There may be chances that in long run i.e after 20-30 year, some of the private insurance company will fly away from country. If you invest in that type of company only, your whole insurance plan will be vanished. Try to choose Government supported insurance agencies for more reliability. Don’t choose the insurance plan or company by just seeing low premium.
It’s better to choose the minimum two term insurance plan. Even if one insurance company will refuge to give the claim amount, you will get the claim amount of other Insurance company.
If you divide your term plan into multiple insurance companies, company will not try to reject the claim. Because the claim amount will be low, company will not want to dilute the reputation by rejecting the claim.