If you want to buy a term insurance plan then you should take the right steps and avoid the mistakes. Let us explore the details in this C. S. Sudheer review of term plans.
Mistakes to Avoid When Buying Term Plans
Mistake #1: Purchase of Insufficient Cover
Before taking insurance cover you need to take into consideration your other liabilities so that cover you take is sufficient for your needs. As per C. S. Sudheer Indian Money review, you should also examine the effect of inflation on your insurance cover and plan accordingly.
- S. Sudheer Indian Money CEO also states that the general rule is that sum assured for the term plan should be a minimum of 10 times more than annual income you have. For instance, if you are earning five lakhs annually then then term plan should be for 50 lakhs.
Mistake #2: Opting for Shorter Terms
According to C. S. Sudheer review Bangalore, many people opt for a short term policy since these policies carry a lower premium. But, you need to keep note of the fact that such strategy will prove to be wrong in the long run.
This is because, at the end of the policy cover you will have to purchase a new one and the expenditure you will have to make on buying one will increase as your age moves up. As such, it is always better to purchase term plan of a longer duration.