highlights
While taking the cover, the needs of the family should be properly assessed.
People often make mistakes even in choosing the company.
Insurance companies reject claims on giving wrong information.
New Delhi. Looking at the uncertainties of life, now term insurance has become mandatory for every man. Through this, the financial future of your family can be secured at a very low premium. Term insurance is helpful in meeting the financial needs and financial goals of one’s family when one is no more in the world. One should be very careful while taking term insurance. A term insurance policy should be bought after thoroughly examining the claims and promises of the insurance companies and analyzing your financial needs. Many people make some mistakes while buying this insurance. Mistakes cost a lot later.
If you also want that your family should get the full benefit of term insurance, then before taking this insurance, keep some things in mind. Avoiding the common mistakes that people usually make is not a difficult task. Today we are telling you about 5 such mistakes, which destroy the fleet of term insurance policy.
read this also- Can you invest money in NPS even after retirement? Know the rules and regulations of the plan to make big funds in less investment
get the wrong cover
Usually people make a mistake in deciding how much term insurance they should take. They take term insurance cover without taking into account family expenses, long term financial goals, loans and other financial commitments. What happens is that sometimes term insurance cover does not meet all the needs and the family has to face difficulties. There is a universal rule for the amount of term insurance that should be taken. It is a rule that you should take a term insurance cover that is 20 times your current annual income.
Choosing the wrong pay-out option
Claim pay-out plan is the means by which the insurance company will give money to your family. In term insurance, lumpsum pay-out, monthly income pay-out options and lumpsum and monthly income pay-out options are available. Most of the people are careless in choosing the pay-out plan. Apart from this, his family has difficulty in handling the amount received in the claim.
Ignore Riders
While taking term insurance, many people opt for add-ons called riders. Do not take Riders give an additional amount to the insured in the form of a claim on the occurrence of some specified events. Add ons like Accidental Disability Rider, Critical Illness Rider and Accidental Death Benefit Rider are provided by insurance companies. Of these, you must choose the rider according to your need.
choosing the wrong company
Most people usually choose an insurance company by looking at its claim settlement ratio. This is not the right way to choose an insurance company. It is not necessary that the company whose claim settlement ratio is good, its service should also be good. Many companies improve their claim settlement ratio by settling small claims, but their record is poor in large settlements.
Do not take proposal form seriously
Most people do not take the term insurance proposal form seriously. They neither read it well and sometimes unknowingly and sometimes deliberately fill wrong information. If you have filled wrong information in the proposal form or have deliberately hidden any information, then the company can further refuse to give claim to your family.
First read breaking news in Hindi News18 Hindi| Read today’s latest news, live news updates, most reliable Hindi news website News18 Hindi.
Tags: business news in hindi, Insurance, personal finance
FIRST PUBLISHED : March 24, 2023, 14:47 IST
