BEWARE | 7 INSURANCE MISTAKES (Must Watch) | Term Insurance 2024

When securing the financial future of your family, term insurance is a critical tool. However, to maximize its benefits, it's important to avoid common pitfalls that many people encounter. From choosing the right term length to ensuring adequate coverage and proper disclosure of medical information, understanding these key aspects can make a significant difference. Here are some mistakes to avoid while taking term insurance to ensure that your policy effectively meets your needs and provides the intended financial security for your loved ones.

Mistakes to Avoid While Taking Term Insurance

- Purchasing a Term Plan for a Short Period or Too Long:
Choosing the right term length is crucial. A term that is too short may leave your family unprotected if something happens to you after the policy ends. On the other hand, a term that is too long may result in unnecessarily high premiums, especially if your family no longer relies on your income after retirement. Aim for a term that covers your working years and any period when your family depends on your income.

- Delaying the Purchase of a Term Plan:
Postponing the purchase of term insurance can lead to higher premiums due to age-related risks and potential health issues. Early purchase ensures lower premiums and reduces the risk of policy rejection due to medical conditions.

- Default Lump Sum Payout Option:
Opting for a lump sum payout might not be ideal for everyone, especially those who are not financially savvy. It's important to explore other payout options such as a combination of lump sum and fixed monthly payouts or lump sum with increasing monthly payouts, which can provide better financial stability for your beneficiaries.

- Treating Insurance as an Investment:
Term insurance should primarily be viewed as a protection tool rather than an investment. The main goal is to ensure your family's financial security in your absence. While some policies offer maturity benefits, they should not be the primary reason for purchasing term insurance.

- Insufficient Sum Assured:
Choosing an inadequate sum assured can leave your family under-protected. Ensure the sum assured is sufficient to cover your family’s financial needs, considering factors like inflation, outstanding debts, and future expenses.

- Not Sharing Correct Medical Information:
Failing to disclose your full medical history can lead to claim denials. Always provide accurate and complete medical information to ensure your policy remains valid and your family can claim the benefits without issues.

- Opting for Excessive Riders or No Rider at All:
While riders can enhance your policy, opting for too many can make it expensive. Conversely, having no riders might leave you underinsured. Key riders to consider include Critical Illness, Terminal Illness, Waiver of Premium, and Accidental Death Benefit. Choose riders that provide significant benefits relevant to your needs.

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[vinothkumar]

Thanks. Without watching your vedio I bought insurance and did few mistakes
1, lumpsum payout
2, insured till my 75 age

[narasimhanmurugan]

Please make a video for how to claim a term insurance at some point of time its will be useful for many. Like what kind of doc required like that how do we approach insurance company

[usgelm]

அருமை 👌 அருமை 👆மிக அருமை 👍 தொடருங்கள்.

[senthilkumaran]

I have insurance with my home loan value around 1 crore, shall I need to take term insurance?

[sureshavr]

Hi boosan bro ... a small always u r doing a vaulable videos.. if use english sub title, it will be helpfull for other language persons also ... and our community size also ll get increase... 😊

[geetharadhakrishnan]

Sir, in a family of 4, if father has taken the term insurance and something happens to both father and mother, will the children get the benefits? Or will it only go to the nominee (mother for example). How to ensure the kids get the benefit?

[praveenbalimunusamy]

Anna what is T2T stock, how to invest and what is advantage disadvantage of that sollunga please.
Thank you

[CyberPsychGaming]

Choosing the insurance brand is the toughest, everyone finds some mistake and rejects

[kamatchikumarduraisamy]

Hi Bro, Ungaloda Term Insurance ah nenga epadi choose panunenga . Current ah ungaloda Term Insurance ethu and entha age la start panunenga . Real time input sollunga Bro. Please

[ajaykrishna]

Bro I took till 85 years in Max Life. But there is an option that I can cancel the policy after I become 60 and can get the premium alone back (without GST). Apart from that I am also doing SIP. So I don't think there is any problem with my case

[silamparasanparaman]

Bro I have made about 2cr term insurance for me. Now even I don't have that much idea how to handle it and use it for my family. Can you make a video about how to utilize the claimed amount for my family I have 2 daughters and a wife? How can they sustain and settle themself.

[TamilSelviR-cc]

Yes Correct 100% 👍🏻...

Health Insurance & Term Insurance ரொம்ப Best எல்லாருக்குமே....

Insurance அப்டினாலே எல்லாரும் Fraud, Fake ன்னு தான் நெனைக்கிறாங்க....

But நமக்கு ஏதாவது Medical Expense வரும் போது, நம்ம Reception ல உக்காந்து பணத்தை பத்தி யோசிக்கிறதா அல்லது உடல் நிலை சரி இல்லாதவரை பற்றி யோசிக்கிறதா அப்டினு ஒரு பயம் and வேதனை உடன் இருக்கும் போது,

நம்ம கண்ணு முன்னாடி இன்சூரன்ஸ் Card எடுத்திருந்த ஒரு நபர் Claim Card Use பண்ணும் போது...

நாமலும் பன்னிருக்கலாமே ன்னு தோணும்... அப்போ தான் புரியும் இன்சூரன்ஸ் அருமை....

ஏன் எடுக்க சொல்ராங்க ன்னு...

( கடன் வாங்கி Hospital செலவு பண்ணிட்டாலும் கூட, வீட்டுக்கு வந்துட்டு கடன் காக ஓடுவோமா அல்லது கடனை அடைக்க ஓடுவோமா...)

யோசிச்சு முடிவு எடுங்க.... 👍🏻

Term Insurance :

நம்மளால ஒரு வருமானம் குடும்பத்திற்கு வரும் போது நம்ம இல்லனா குடும்ப செலவு அல்லது குடும்ப கடன் ஐ யாரு குடுப்பாங்க அதெல்லாம் யோசிச்சு, அதுக்காக பண்றது தான் Term Insurance...

நம்மளோட வயதும், உடல் நலனும் சரியாக இருக்கும் போது மட்டுமே எந்த இன்சூரன்ஸ் க்கும் குறைந்த செலவில் பிரீமியம் கிடைக்கும்...

[PradeepRaghavan]

Hi bro I have a question. Could you please clarify if investing a portion of my monthly salary, around 5000 to 8000 Rs, in the Quant ELSS Tax Saver Fund Direct Growth Mutual Fund is a good choice? Are there any better alternatives? I have idea to started my SIP in this fund. please share you opinion

[tamil_]

Hi boosan, please make a video of where to see the demat account balances live demo

[gotham_city_youtube]

Hi, My self gowtham. I have taken the HDFC Term insurance policy with the help of your video and DETO plat form. The premium is just RS 645 with 50 lack coverage up to 40 years. special mention DETO platform is really good, just give it a try - every one will love it. I thank Finance Boosan for educating me.

[Hello-tqbr]

Bro, can we create our own mutual funds?

[sivasankarjagadeesan]

Hello @boosan, can you please make a video how to drop/close insurance, especially lic without losing money paid so far

[VikneshManoharan]

Bro.. One quick question.. Lumpsum investment can be done only using index fund? Or can we do in mid or large cap also.. Is lumpsum specific only to index fund? Can you pls clarify. Thanks.

[lokeshloke]

Thank you so much for the information sir

[aryavm]

u have made many videos on Insurance and thus emphasizing on the importance of Insurance.. i appreciate it.. but you have never mentioned about MWP act options.. could you please throw some light on it.. whether premium will increase bcoz of it..