Home | insurance | 9 Common Mistakes To Avoid While Buying Term Insurance

9 common mistakes to avoid while buying term insurance

9 common mistakes to avoid while buying term insurance

Term insurance provides a financial cushion for the family.  If  the policyholder passes away during the specified term , the beneficiary receives a death benefit .  This amount is usually not taxable and provides the family with financial stability and comfort in the long run. But, choosing an insurance plan requires research. One must pick the right provider, choose the necessary benefits, and read the terms carefully. One must also avoid making mistakes when buying term insurance.

Not buying the right policy at the right  time
While term insurance premiums remain consistent across the policy duration, the amount is calculated based on the policyholder’s age when applying. That’s why one should consider buying early. It results in a low annual expense across the policy term and higher savings. Still, that does not mean individuals must invest in a term insurance plan immediately after they start earning. Buying a policy is advisable only if a person has financial dependents or has taken a huge loan.

Buying for a short duration
While buying term insurance is a wise decision, one must choose the tenure carefully. Many experts recommend buying a long-term policy that remains active into one’s golden years. Sure, the shorter-term plans have affordable premiums, but the amount increases when renewing the plan down the line. Moreover, shorter-term insurance usually becomes useless in times of need.

Ignoring the riders
Many new-age insurance plans come with added benefits or riders. Two common riders are accidental death benefits and critical illness coverage. Sadly, only a few consider these because they increase the plan’s total cost. But they fail to see that the add-ons offer extra financial security. So, one should evaluate and choose the ones that best suit their needs.

Opting for an insufficient sum assured
A person’s term insurance plan must provide adequate financial coverage for their family if something happens to them. The amount needed depends on the individual’s financial status, the family’s educational needs, and lifestyle. If someone is the family’s sole breadwinner and does not choose the right amount, it can be a big mistake. In this scenario, the family may face financial hardships and struggle to maintain their lifestyle. The lower sum assured won’t last long enough to support the family until they find an alternate income stream.

Prioritizing price over coverage
Plans that provide a huge death benefit are usually expensive, but that does not mean one should settle for less.  The cheapest available plan might  not  offer  all  the necessary benefits, causing one’s dependents to face financial struggles later.  A little research might help one find the correct insurance plan with affordable premiums and a sufficient sum assured. If someone has to go for the cheapest plan, they should at least sign up for a few add-ons to receive suitable coverage.

Failing to compare different policies
Many term life insurance plans are available, each with different tenures and benefits. Comparing them is crucial to finding the best policy. Skipping this step may result in a higher premium and limited coverage. If someone finds comparing plans tedious, they can use online tools. Many websites list popular plans from different insurance companies and allow users to compare their coverage amounts, premiums charged, and features to help them make an informed selection.

Hiding information while applying
The declarations in the policy application form the basis for the insurer to determine whether they can cover one’s life. They also help decide the premium amount. If one enters incomplete or incorrect details, the insurer cannot assess the risk properly. That’s why they tend to reject the claims of many policyholders. To avoid this situation, one should be fair and truthful in their declarations. Being open and 100% honest with the insurance company will ensure the family receives the claim amount without hassle.

Picking inappropriate customizations
Several insurance companies let people tailor their term insurance plans to cater to the family’s unique needs and priorities. Sadly, many make mistakes when customizing their plan. For instance, they choose the lump sum payout option even after knowing their family cannot manage  a large sum of  money. Similarly, some choose the limited pay option even after knowing an unstable income in the future could pose challenges for their family. These mistakes may seem negligible, but they could cost the family severely in the long run.

Not reading the policy  terms
Before buying term insurance, one should read the terms and conditions thoroughly. Omitting this step can be costly. Reading the policy terms lets one know  exactly  what the plan covers. If someone has any confusion or queries regarding any clause in the policy, they can ask the agent immediately for clarity.

Term insurance acts as a financial security tool for the family. It gives the policyholder peace of mind as they know their family will be safe even if they are not around.  But  one should be careful when buying term insurance and avoid making mistakes.   One should also review the coverage sum after regular intervals to ensure it is adequate for the family.  This  is an important step because the family’s financial needs may change over time.

Read Also

Know more about exciting & latest articles right here

Foods to Avoid to Manage Eosinophilic Esophagitis

Foods to Avoid to Manage Eosinophilic Esophagitis

Eosinophilic Esophagitis, or EoE, is a chronic digestive disease of the esophagus caused by an allergic condition. It is characterized by chest pain, heartburn, and solid food dysphagia. If this disorder is left untreated, it can cause esophageal remodeling and stricture formation. This disorder is also marked by eosinophilic inflammation and impacts the quality of life of the affected person. You can check out various reliable health websites to get information on eosinophilic esophagitis. A patient with EoE must be very careful with his health and meal plans, as research suggests that EoE is linked to food allergies. Therefore, the six most common food items that are responsible for such allergies include: Dairy Cow milk is said to be one of the most common reasons for EoE. Milk protein can trigger too many eosinophils. You should avoid food items made up of milk, buttermilk, lactose, and other related dairy products. You can replace dairy products with coconut hemp, dairy-free yogurts, cashew ice cream, etc. Soy Soy-based food items include tofu, soy butter, soymilk, and miso. Soy cheese, soy nuts, soy milk, etc., should be avoided and can be substituted with refined soybean oil or coconut aminos. Wheat You might think wheat is only found in bread, cereal, or baked goods.
Read More
5 Common Digestive Issues and Their Symptoms

5 Common Digestive Issues and Their Symptoms

One of the most vital systems in our body is the digestive system. It is responsible for the digestion of food and the distribution of nutrients throughout the body to meet the bodily requirements for energy, development, and cell repair. Issues in the digestive can interfere with the body’s ability to get energy from food. While some gastrointestinal issues can go away with healthy eating habits, other concerns may require treatment.  Irritable bowel syndrome (IBS) IBS is a functional bowel disorder. This means the cluster of varied symptoms categorized as IBS is brought on by changes in the normal functioning of the digestive system. The primary sign is abdominal pain, which can develop before or after a bowel movement, and is a reliable indicator of IBS. Additionally, one may experience both constipation and diarrhea. The form of IBS can be determined depending on whether a person has diarrhea or constipation more frequently or both equally. Other IBS signs and symptoms are incomplete bowel motions, white mucus in the stool, and bloating. Nutrition is important for managing the symptoms of IBS, which includes eating low-fat, high-fiber meals and avoiding common trigger foods when the cause of the condition is unknown. Food poisoning or gastrointestinal infection are common causes.
Read More
8 Common Cleaning Mistakes to Avoid

8 Common Cleaning Mistakes to Avoid

Most of us make it a goal to keep our house clean and tidy. Cleaning the house may look like a straightforward task, but there are certain aspects that are generally overlooked. Cleaning is a time consuming and tedious activity. And most of us make common cleaning mistakes that do not provide us with the results we expect. So here is a list of cleaning mistakes to avoid for better results and a sparkling clean home. Mixing cleaning chemicals You may think mixing two or more cleaning products will increase the cleaning power. However, this can be very dangerous as it might release toxic fumes. For example, household cleaners like Clorox Pinesol should never be mixed with bleach as they can react together to produce hazardous chlorine gas or even chloroform. Similarly, Pinesol disinfectant should not be mixed with room spray sanitizer as the chemicals could react together to unleash a toxic cloud of gases that can trigger respiratory problems and even cause skin burns. Instead of mixing chemicals, use a single cleaning agent or solution and stick to a reliable brand. Alternatively, you can also enlist the help of a cleaning company, like Servpro Services, which offers a range of affordable home cleaning services. Using feather dusters A feather duster may seem very useful, but all it does is spread the dust from one surface to another.
Read More
11 Potential Warning Signs of Excess Sugar Intake

11 Potential Warning Signs of Excess Sugar Intake

Processed foods like cakes, cookies, candies, and breakfast cereals contain added sugar, and most people find them delicious and irresistible. However, they have little nutritional value. Eating too many sweets can increase the risk of several health issues. For instance, it can lead to blood sugar spikes and heart disease. When a person eats too much sugar regularly, the body begins to give signs that it is time to cut back on sweet foods. High blood pressure Besides monitoring salt intake, people suffering from high blood pressure should watch their sugar intake because eating too much sugar is also linked to high blood pressure. According to a study, foods high in sugar can reduce nitric oxide in the blood vessels, which can, in turn, impact blood flow and lead to high blood pressure. Mood swings or irritability Feeling moody, irritable, or depressed on and off is a common sign of high sugar intake. Mood swings occur as foods high in sugar affect the neurotransmitters in the brain that regulate mood. Sugary foods also negatively impact gut function, another factor linked to a person’s mood. Low energy or tiredness Binging on sugary snacks wreaks havoc on one’s blood sugar levels. It first causes blood glucose to rise, providing a boost of energy.
Read More