Top 5 Mistakes to Avoid When Buying Term Insurance

🧩 Why Term Insurance Deserves More Thought Than a Click

Term insurance is the simplest and most affordable way to secure your family’s financial future — yet it’s often the most misunderstood.
Many people buy it in a rush, guided by ads or comparison sites, only to later discover their cover isn’t sufficient or their claim might get stuck.

Here are the top 5 mistakes people make when buying term insurance, and how Planswell Brokers helps you avoid them.

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1️⃣ Choosing an Inadequate Cover Amount

The biggest mistake? Picking a random number — ₹50 lakh or ₹1 crore — without calculating actual needs. Your term plan should cover loans, living expenses, and future goals like education.

✅ How to avoid it:
Use the “10x income + liabilities” rule as a baseline, and then customise. Planswell Brokers helps you assess your income, lifestyle, and dependents to find the right sum assured — not just a round figure.

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2️⃣ Focusing Only on the Cheapest Premium

Many people chase the lowest premium, ignoring the insurer’s claim settlement ratio, add-on riders, and service quality. A cheap policy is useless if it fails your family when it matters.

✅ How to avoid it:
Evaluate value, not just price. Planswell Brokers compares multiple insurers, factoring in claim track record, reliability, and flexibility — so you get genuine protection, not false savings.

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3️⃣ Hiding or Misstating Health Information

Concealing medical conditions or habits like smoking to get a lower premium can lead to claim rejection later. Insurance relies on transparency — even small omissions can cause big problems.

✅ How to avoid it:
Always declare your health and lifestyle honestly. Planswell Brokers ensures your disclosures are correctly captured, so your family’s claim is never jeopardized by paperwork technicalities.

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4️⃣ Ignoring Riders and Customisation Options

Critical illness, accidental death, or disability riders can make your plan much stronger — yet many skip them due to lack of advice or awareness.

✅ How to avoid it:
Let the experts at Planswell Brokers review your goals and suggest meaningful riders, without upselling unnecessary ones. We focus on relevance, not repetition.

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5️⃣ Not Reviewing or Updating the Policy Over Time

Your financial life changes — new loans, children, or career growth — but most people never update their cover. The plan that fit you at 25 may be inadequate at 35.

✅ How to avoid it:
Review your term cover every 3–5 years or after major life events. Planswell Brokers provides ongoing policy reviews and reminders, ensuring your cover grows with your responsibilities.

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🛡️ Final Thoughts

Term insurance isn’t just a policy — it’s a promise. Avoiding these five mistakes can ensure that promise holds true when your family needs it most.

At Planswell Brokers, we simplify term insurance with personalised, spam-free advice, transparent comparisons, and full claim support — so you make a decision once, and make it right.

💬 Planning to buy term insurance?
Talk to an advisor at Planswell Brokers today to get the right cover for your family — honest advice, zero spam, and complete peace of mind.