Term Insurance Plan: Term insurance policy is becoming increasingly popular these days. The biggest reason for this is that in the absence of the insured, it provides large coverage to the family at a low premium. However, just like there are many things to keep in mind while buying other insurance policies, in the same way while buying a term insurance policy, there is also information to be disclosed and some basic things have to be taken care of. In the event of not doing so, there is a fear of rejection of the term plan claim or the plan may become costly. Some such mistakes are being given below, which should be avoided.
Incomplete disclosure while buying the plan
One of the most common mistakes while buying a term insurance policy is that some insurers do not disclose their medical history. The main reason for doing this is that if the medical history is disclosed, then you will not be able to buy the policy or may have to pay more premium. However, doing so may cause problems at the time of claim as the insurance company may reject its payment.
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Choosing a short term insurance plan
Another biggest mistake made while buying a term insurance policy is to buy a plan with a shorter tenure. Although this can provide relief in the form of lower premiums at present, but after the end of the policy term, when buying the next plan, it can be costly. For example, at the age of 30, if you choose a plan with a tenure of 10 years, then at the age of 40, you will have to buy the next plan for 10 years, which will be costly. Instead, at the age of 30, it would be better to buy a plan for 20 years.
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Don’t buy policy early
Do not leave your plan to buy a term insurance policy for the future. The sooner you buy it, the less premium you will have to pay. The older you get, the higher the premium you have to pay to buy a term insurance policy.
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Choosing a plan based on premium only
While choosing a term insurance plan, don’t just make the premium the criterion. Affordable plans may not include key riders. Apart from this, before buying the plan, definitely check the track record of insurance companies regarding claim settlement.
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