Are You Making These 3 Mistakes While Buying a Term Plan?

Amit got a term plan in hurriedness and became a dupe of mis-sold term plan. Though an individual learns from his own faults, you can certainly learn a lot more from Amit’s experience.

Buying a term insurance plan would be the best gift that you buy for yourself and your loved ones. It covers you from the unforeseen situations like death thereby providing the sum assured to your nominee on death of the policyholder. But are you aware of the key points to be considered while you buy a term plan? Many of us fall prey to misselling of insurance products and then regret not researching thoroughly before finalizing on one.

These 3 points will give you a clear-cut picture of the common blunders which it had made and you can avoid while buying a term insurance plan.

1. Don’t wait to buy a term plan
   It may be you are young enough to buy yourself a term plan. But delay to buy one would refrain you from covering any unexpected risks. Even if you have just started earning and you easily afford to pay the minuscule premium amount every year. So why unnecessarily delay when you can buy yourself a term plan at an early age. By doing so, you can avoid struggling for ample cover in emergencies with your rising age and also have the benefits of a lower premium.
    

2. Don’t buy a term plan for a shorter term
   One of the blunders committed by Amit made was buying a term plan for a shorter period say about 10 years with an intention to save a few pennies on premium amount. For instance, it doesn’t make sense to buy a term plan for 10 years and post completion of 10 years buying another term plan for a higher premium as your age too increases. A person in his 20s would require a term plan with a higher tenure than the person who is in his 50s.
    

3. Don’t forget to inform your family about your term plan
   Buying a term plan is definitely a great decision. But did you inform your family about your purchase? If you didn’t inform them about your term insurance plan and the sum assured then you are seriously creating a big mistake by not keeping your family informed about the term plan since they may not know how to use the policy if the situation demands. Imagine a situation where you leave this world peacefully without telling your family about the term plan that you had otherwise purchased for their comfortable lifestyle. Therefore, it is important to understand the plan you opted for and then inform your family accordingly.

STAY AWAY from these common mistakes which Amit had made and buy a term plan that proves to be an asset to your beloved family!

Siddhant Dubey - Writer & Photographer

Siddhant works as a freelance content writer who is interested in a wide range of spheres from photography and personal finance to cooking. He is also an aspiring photographer striving to showcase life around him through his vision.