It’s not easy to get a suitable life insurance for your family and sometimes you end up with buying some “waste” which has no future value.
But not now.
Here, we have listed of few things which you should avoid while buying a life insurance for yourself or for your family members.
So, let’s get started:
#1 Not Asking questions?
If you are willing to buy a life insurance, hence you should learn first what is your requirement and how much coverage you want.
Secondly and the most important thing, never stop asking a question to the insurance agents.
Now, one thing you should understand that most policies have some hidden conditions and no any insurance agent discloses them easily.
And if you don’t ask about them, at the end you will suffer.
So, it is advised to ask every question which strikes in your mind. After all, it’s the matter of your and your family’s future.
#2 Ignoring to do your homework before consulting with any agent
As I mentioned earlier that insurance agents don’t reveal every condition about the policy and hence you have to research about the term and conditions of each policy by own.
And if you ignore doing so, you may end up putting your family’s future at risk.
To know about the policy, you may go to the website and check its conditions. Or you can also call the company and discuss its every condition.
#3 Naming a Minor or Impaired person as beneficiary
Most of us only think of keeping a beneficiary, who is nothing but a person who takes the advantage of policy after insured person’s death.
Now, suppose a case in which a man who has insurance on his name and the beneficiary is his young child. If somehow both man and his wife die in an accident
If somehow both man and his wife die in an accident, leaving the kid alone. In this scenario, the court would appoint a guardian as a caretaker of the kid and also the control of policy’s death benefit would go to him until child become a legal adult.
So, it is not a good idea to make a minor beneficiary.
Secondly, if you make an impaired person beneficiary, the chance that the impaired person would not survive much to utilize the policy’s death benefit.
#4 Not naming any Contingent Beneficiaries
Now, to solve the problems caused by beneficiary’s death, there is an option of naming contingent beneficiaries.
The contingent beneficiary is that person who can claim policy benefits if and only if the primary beneficiary is not alive.
And that’s why it is advised to name at least one contingent beneficiary, to avoid any problem after policyholder and primary beneficiary’ death.
#5 Using unclear beneficiary language
Another major thing, which is very important while buying a policy is, keeping your language very clean and clear so that no confusion could occur in future.
Now, suppose, a person has bought a policy and named “the unborn child” of his brother as beneficiary.
By the time he died, his brother has four children.
Now, the problem here is, who would get the policy’s benefits as there is four possible “beneficiary”.
So, it is advised either to keep your language clear or update your language time to time to avoid such incidents.
#5 Filling false stuff in insurance application to look good
While applying for a policy, every person dreams of getting maximum profit out of it, but wait, to gain more profit, if you are writing fake things on your application form, then mate, you are doing wrong.
Look, at some point, the insurance company comes to know about that false thing which you have written. And trust me, that simple point may become the reason on which company declines your claim.
So, it is advised to discuss the requirements of the policy you are opting before buying it.
#6 Buying too many policies
If you already have several life insurance policies on your name, do not go with another.
Because with every new policy, your amount to pay the premiums would increase, which after some time becomes a burden.
And that’s why it is advised to do a research and find out the most efficient and flexible policy for you before buying one.
At the end:
Once you have bought a life insurance policy for you, you should always keep in mind, that on any life-changing event such as marriage, divorce. adoption or birth of a child, you must update the details filled while taking policy.
Now, here details could be anything, your marital status, death and birth of beneficiaries to avoid any problems in future.