12 Mistakes to Avoid When Buying a Term Plan

Mistakes People Make While Buying Term Insurance Plan

FAQs About Term Insurance Plan

Is it essential to consider the credits while calculating the policy amount? up-arrow

If you have already taken credit to fulfil any goal or cover your urgent need for funds, it is essential to take it into consideration. This is important because if you encounter any unfortunate incident, then your family will have to settle the debt. If they are unable to pay the EMIs on time, then the lenders might take strict actions.

Can selecting a wrong claim payout option be a serious mistake? up-arrow

If you choose to receive the entire claim amount at once, it will be a significant amount to tide over immediate financial needs. On the other hand, you can choose to hand a fixed amount every month to your family to ensure its fair usage for a longer time. Thus, you should select the payout option as per your needs.

What are the things one must keep in mind while purchasing a term insurance plan? up-arrow

Policyholders must ensure the following things while buying a term insurance plan: 

  • Getting adequate coverage 
  • Adding rider plans for extra coverage 
  • Adding nominee name to the insurance plan 
  • Disclosing all the existing policies 

What type of death is not taken into consideration in a term insurance plan? up-arrow

A term insurance plan does not provide any coverage for death as a result of self-inflicted wounds.