Availing term life insurance is the first step towards financial security. The term life insurance plan, provides protection to your loved ones, when you are not around. Every working individual should avail term life insurance. On the untimely demise of the policyholder, the entire sum assured (death benefit) is paid to the nominee. This money can be used to give children, a good education and a quality life.
As life insurance provides safety to your family, you should be very careful to choose the best life insurance plan. These are some of the mistakes you must avoid while availing life insurance.
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Blunders To Avoid While Availing Life Insurance
It is very important to financially secure your family with a term life insurance plan, which is a pure risk protection plan.
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2. Not purchasing insurance at the right time
Buying life insurance might become difficult after you enter your 30s, as expenses increase. Also, your premium will increase once you get older.
3. Buying life insurance just to save tax
For instance, if you buy an endowment plan to save tax thinking that it will protect your family, this may not be true. Endowment plans provide less mortality cover compared to term life plans. If something untoward happens to you, your family will not have enough money to enjoy current standards of living.
Buying life insurance without doing proper research just to save tax is a big mistake. So, whenever you buy a life insurance plan, it is very important to do proper research and buy a plan which suits your requirement.
4. Buying too many Riders
5. Opting for a shorter term
Suppose you want to avail a new life insurance plan after the completion of the policy term, you would have to pay a higher premium. If you are not in good health it will be difficult to get the life insurance plan. Be Wise, Get Rich.
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