Health and security are some of the significant concerns of man, whether it is the safety of self or his loved ones. People often believe that money is not here to stay forever. Hence it is better to make the best use of it when you have it by either investing it or saving it. Investments can be in purchasing commodities and acquiring properties, while saving can be done in fixed deposits and buying a good term policy online.
Health insurance or term plans are ideal for securing the future of those you care about. Many insurance companies are now encouraging people to purchase term policies online. The reasons are simple:
- It’s convenient
- It saves you the hassle of long queues at the insurance companies
- Easy claim returns
- Paperless transactions
However, most people make a few common mistakes while investing in a good term policy. We are attempting to discuss those mistakes in this blog so you can learn from them to avoid making them:
7 Mistakes you should avoid While Buying a Term Policy Online
Not buying the policy on time.
When it comes to investing in term plans, most people ignore the topic and postpone the plans for the future. Financial experts believe it is best to invest in a term plan early, giving security with lower premium payment options. One must purchase a term plan as soon as they get a job and stable financial support coming in.
Not investing in a good term plan
A lot of insurance companies offer plans with multiple benefits. It is essential to purchasing the term plan that will give better coverage and a higher maturity amount. People often invest in term plans without understanding the term Plan benefits and make a wrong decision when they realize the returns and coverage are almost next to nothing.
Not providing full details while filling the proposal form
Once you have decided and chosen the term plan suitable for you, they highly recommend it. They later used the information mentioned in the proposal forms for claim benefits. Any false information or information that is hidden can hamper the claim benefits.
Not selecting the right claim option
Most of the time, the insurance policy claim payouts are paid in a lump sum. If you feel your family will not be able to handle such a significant amount and if there is a possibility that they will spend the entire money in one go, then it is better to choose the claim payout options wisely. A monthly payout is best, so monthly financial support comes in for your family, even in your absence.
Not understanding the coverage amount
Choosing the term plans can be tricky. We highly recommended financial advice when picking a term plan for your future. Most insurance companies have a personal financial advisor who carefully guides individuals and explains the advantages of coverage amounts.
Buying short term plans
Many people get tempted to invest in long-term plans as they see it as a waste of money. However, the benefits of these long-term plans are seen in later years. Investing in short-term policies can be very attractive, but they give lesser maturity amounts and may not be best suitable for long-term investments.
Not trusting and purchasing the policy online
Gone are the days when people had to stand in a queue to purchase a policy. Things have turned digital, and online purchasing policies have become more accessible. Individuals can compare term plans online and buy them according to their convenience. The terms and conditions, the maturity amount, the claim payout options, and the coverage details are all mentioned in the policy when buying online.
Hence purchase the accurate term policy at the right time online.