Saturday, September 24, 2022
Investment

Common mistakes to avoid while buying term insurance

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Living in a world flooded with uncertainties, it is imperative that we look towards sustenance and make it our top priority, and honestly speaking, no tool apart from a comprehensive term insurance policy can provide you with that. A term insurance policy is simple and yet an extremely cost-effective method that can help you secure your finances and the future of your loved ones. But, the process of buying one can be a bit confusing and intimidating. In fact, many people end up making mistakes. If you are buying a term insurance plan, then make sure to avoid the following mistakes.

Buying Insufficient Coverage

Term insurance policies are bought with the intention of improving your finances and allowing you to live a more happy, stable, and comfortable life. But, if the sum assured is not enough, the funds will not last for a long period of time. In term plans, the sum insured must be 10 times more than the annual income. Even though this will not take care of all the financial constraints, it will shelter you in times of emergency.

Procrastinating

Being healthy and young is good, but that doesn’t mean that you will never need health insurance. Life is uncertain and a medical emergency can come to you when you least expect it. Hence, it is not advisable to procrastinate because purchasing a term insurance plan not only lowers the premium but also protects you from unforeseen risks. This will also protect you sufficiently in case of emergencies.

Buying Insurance With The Wrong Information

One more mistake people make while purchasing term insurance in India, is that they buy policies without getting much information. Despite having such short policies, it is not wise to make complete and entire disclosures on life insurance applications, because if you do so, you will end up paying a higher premium. For example, if you buy a policy of 5 years, it means you are not anticipating any disease in a short amount of time. But in case things go wrong, the agency may refuse to make payments and call the insurance void and null.

Sticking To Just 1 Insurance Company

People often tend to buy insurance plans from companies they have heard or known of for the longest period of time. But when you compare them to other insurance companies, it will help you get a good plan at a low and affordable price. So, make sure that you have done full research, have understood the different types of policies before you jump to a conclusion.

A term insurance plan as well as a health insurance plan works as an excellent financial cushion as it safeguards your loved ones and your family and shelters them in the most unfortunate and challenging of times. It is also a good way to ensure that your loved ones are safe and sound. Don’t allow yourself to be bogged down by such misconceptions so easily when you purchase an insurance cover. In addition to the above mentioned points make sure to purchase your insurance from a reputed company such as One Assure who can ensure you don’t make any of the mistakes.