By Spotlight Wirelast Updated
Buying a term plan is one of the smartest ways to protect your family financially in case of an unfortunate event. The sooner you buy it, the better it can be for your loved ones and your peace of mind. However, in the hurry for it, one may end up committing certain mistakes that may lead to issues with your overall term insurance journey. To help you get the best term insurance plan in India, here are the most common pitfalls to watch out for and avoid.Income Tax GuideIncome Tax Slabs FY 2025-26Income Tax Calculator 2025New Income Tax Bill 20251. Choosing an inadequate sum assuredA key purpose of term insurance is to replace your income and help your family manage expenses in your absence. Many buyers underestimate how much coverage they need. Ideally, the sum assured should be 15-20 times your annual income. If you are unsure, use a term life insurance premium calculator to determine the right amount as per your budget based on your age and other aspects. For example, if you have several dependents with high expenses, you may want to search for the best term insurance plan for ₹1 crore.2. Opting for a short-term policySome buyers choose shorter policy durations to reduce premiums. However, this leaves them uninsured at a later age when buying a new plan becomes expensive or even impossible due to health issues. It is advisable to choose a policy term that covers you till at least the age of retirement or beyond.3. Not disclosing health or lifestyle details honestlyOne major reason for claim rejection is hiding important facts, like smoking habits, pre-existing diseases, or occupational risks. Insurers need to assess these aspects before issuing a policy. If they find that you have provided false information, they can nullify the claim later. Even if you have the best term insurance plan in India, but do not disclose your health history with truthfulness, the coverage from the plan may prove futile. Hence, always be honest during the application process.4. Not opting for necessary ridersTerm plans often offer optional riders like critical illness cover, accidental death benefit, or waiver of premium on disability. These can enhance the value of your base plan for a small additional premium. When comparing plans, review whether you need these riders and add them to curate the best term insurance plan in India suited to your needs.5. Not comparing plans onlineToday, there are multiple term insurance plans available from various insurers. Use comparison platforms to compare features, premiums, and claim settlement ratios. In addition, use tools like a term life insurance premium calculator to compare premium quotes. This helps you identify the best term insurance plan for ₹ 1 crore or whatever amount fits your requirement and the insurer offering the right premium for it. 6. Selecting the wrong payout optionTerm plans offer different payout choices: lump sum, monthly income, or a combination of both. In their hurry, one might overlook which payout option will work best for their family. Review your family’s expense behaviour and make sure to choose a payout that will suit your beneficiaries the best. Term insurance is a must-have for anyone with financial dependents, but choosing the right plan requires attention to detail. Avoiding these common mistakes ensures your loved ones truly benefit from your investment. Use a term life insurance premium calculator, compare options wisely, and aim for the best term insurance plan in India that secures your family’s future without compromise.Disclaimer: The above content is non-editorial, and TIL hereby disclaims any and all warranties, expressed or implied, relating to the same. TIL does not guarantee, vouch for or necessarily endorse any of the above content, nor is it responsible for them in any manner whatsoever. The article does not constitute investment advice. Please take all steps necessary to ascertain that any information and content provided is correct, updated and verified.