{"id":870,"date":"2018-11-14T18:38:36","date_gmt":"2018-11-14T18:38:36","guid":{"rendered":"https:\/\/the7.io\/g-business\/?p=870"},"modified":"2022-03-19T06:31:20","modified_gmt":"2022-03-19T06:31:20","slug":"4-term-life-insurance-mistakes-to-avoid","status":"publish","type":"post","link":"https:\/\/kimtimoney.com\/4-term-life-insurance-mistakes-to-avoid\/","title":{"rendered":"4 Term Life Insurance Mistakes To Avoid"},"content":{"rendered":"

[vc_row][vc_column css=”.vc_custom_1560701587242{padding-bottom: 50px !important;}”][vc_column_text]The term life insurance plan makes sure that your family has enough money to provide for themselves if you were to meet an untimely death. Hence, it is an absolute necessity for every earning individual of a family.<\/p>\n

However, while buying a term life insurance or if you have one already, there are a few things that you need to be mindful of.<\/p>\n

The list below is the 4 mistakes to avoid regarding term life insurance to ensure that your family is financially protected when you are not there<\/p>\n

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4 Mistakes To Avoid For Term Life Insurance<\/h3>\n
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  1. \n

    Not buying enough coverage to replace income<\/h4>\n<\/li>\n<\/ol>\n<\/div>\n<\/div>\n
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    While buying term life insurance, the topmost question in our mind is? how much cover do I need? Though a very popular number these days for term life insurance policy is Rs 1 crore, it is a random number without any proper math behind it.<\/p>\n

    The things that need to be considered while arriving at an amount of coverage are? future household expenses (it should be 15 times your current monthly expenses), your liabilities, important goals, and life events, and if married, then a retirement corpus for your spouse.<\/p>\n

    First, calculate the total amount your family would need considering all the factors mentioned.<\/p>\n

    Next, if you have any financial assets? mutual funds, provident fund, fixed deposit, etc. ? deduct that from the amount needed. This is the easiest way to come to a number while determining your term life insurance coverage.<\/p>\n

    Do not pick a random number no matter how big it sounds, instead, do your math correctly to find out how much coverage you would need.<\/p>\n

    Waiting too long to get a term insurance cover<\/h3>\n

    Waiting too long to get term life insurance means that you would be leaving your family vulnerable to the fact they would have to go through financial hardship in case of your untimely death. Plus, term life insurance gets expensive if you buy it at a later life stage. Also, if you start late, the total amount of premium that you would pay over the years would be much higher than if you buy early.<\/p>\n

    For example, if you buy a Rs 1 crore term plan (till the age of 75) at the age of 30, you would pay a premium of about Rs 10,000 every year. That is, you would pay Rs 4.5 lakh in total. But, if you buy the same plan at 45, you would be paying a yearly premium of around Rs 30,000 The amount you would pay toward the term plan in the next 30 years would be Rs 9 lakh.<\/p>\n

    So, ideally, you should buy term life insurance soon as you start earning.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

    [\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

    The term life insurance plan makes sure that your family has enough money to provide for themselves if you were to meet an untimely death. Hence, it is an absolute necessity for every earning individual of a family.<\/p>\n","protected":false},"author":1,"featured_media":2282,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/kimtimoney.com\/wp-json\/wp\/v2\/posts\/870"}],"collection":[{"href":"https:\/\/kimtimoney.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kimtimoney.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kimtimoney.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kimtimoney.com\/wp-json\/wp\/v2\/comments?post=870"}],"version-history":[{"count":5,"href":"https:\/\/kimtimoney.com\/wp-json\/wp\/v2\/posts\/870\/revisions"}],"predecessor-version":[{"id":2117,"href":"https:\/\/kimtimoney.com\/wp-json\/wp\/v2\/posts\/870\/revisions\/2117"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kimtimoney.com\/wp-json\/wp\/v2\/media\/2282"}],"wp:attachment":[{"href":"https:\/\/kimtimoney.com\/wp-json\/wp\/v2\/media?parent=870"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kimtimoney.com\/wp-json\/wp\/v2\/categories?post=870"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kimtimoney.com\/wp-json\/wp\/v2\/tags?post=870"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}