Page 46 - The Insurance Times November 2025

Don’ts (Things to Avoid) Term insurance is pure protection — don’t confuse
it with ULIPs or endowment plans.
1. Don’t Buy on Premium Alone For wealth creation, use mutual funds or separate
The cheapest policy isn’t always the best. Look investment products.
beyond price — evaluate insurer reputation, claim
Why: Keep protection and investment goals distinct for clar-
service, and flexibility.
ity and efficiency.
Why: A slightly higher premium with a reliable insurer is
better than a low-cost plan with poor service. 6. Don’t Ignore Exclusions or Waiting Periods
Term plans may exclude suicide (first year) or death
2. Don’t Delay Buying due to participation in hazardous activities.
Premiums increase with age and medical risks. Ev- Check these clauses thoroughly.
ery year of delay can raise premiums by 8–10%.
Why: Awareness prevents unpleasant surprises during claim
Health conditions developing later can lead to re- time.
jection or loading (higher premiums).
7. Don’t Rely on Verbal Promises by Agents
Why: The earlier you buy, the cheaper and easier it is to Always verify features and benefits in writing from
get approval.
the official insurer website or policy brochure.
3. Don’t Hide or Understate Health Information Why: Only written terms in the policy document are legally
Many applicants hide smoking, drinking, or minor binding.
ailments.
Conclusion
Insurers verify through medical tests and health
declarations. Buying a term insurance policy is one of the most respon-
sible financial decisions you’ll make. It safeguards your
Why: Any misstatement can invalidate the policy, even af- family’s dreams and secures their future when you’re not
ter long-term payments.
around.
4. Don’t Forget to Review the Policy Periodically Follow the Do’s — assess your needs, disclose facts honestly,
Revisit coverage every few years or after major life read the fine print, and choose a trusted insurer. Avoid the
events (marriage, childbirth, loans).
Don’ts — rushing into decisions, hiding information, or buy-
Increase cover via top-ups or new policies if your ing purely on price.
responsibilities grow.
With the right approach, a term plan can truly become your
Why: Insurance should evolve with your financial obligations. family’s financial shield, offering peace of mind and lasting
5. Don’t Mix Investment with Protection protection.

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42 November 2025 The Insurance Times