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Mistakes To Avoid When Buying Term Insurance
Term insurance is a financial safety net that protects the future of one's family. It ensures that the policyholder's loved ones remain safeguarded if and when the policyholder passes away.
Common Mistakes
Many people make mistakes unknowingly while buying term insurance plans. Here are a few you need to avoid.
Opting For Inadequate Cover
People choose a lower cover amount to save premiums, which is not sufficient for the family years later.
Amount for the Term Insurance
Choosing a plan that is at least 10-15 times your annual income is advisable.
Choosing A Short Policy Term
People opt for a plan with a lower term, not more than 10 to 15 years, to save money. This leaves them financially vulnerable in the years when they would need it the most.
Delaying The Purchase
Many believe that term insurance is something that needs to be bought when their age gets a bit more serious. The truth is: buying early means lower premiums for you.
Hiding Lifestyle Or Health Information
Some people tend to hide the truth when buying term plans for cheaper premiums. The non-disclosure of health issues can be a serious mistake.
Adding Many Riders
Adding riders like serious illness cover or any accidental death cover enhances your policy, but people do it without thinking if they actually need it or not.
Why Buy Term Insurance?
Buying term insurance is important, but choosing it smartly is equally significant. Do not wait too long; start early and opt for the right cover and term.