Common Buying Mistakes

Most term insurance regret is avoidable. These are the eight most expensive mistakes.

• Underinsuring — picking ₹50 lakh when ₹1.5 crore is needed because it 'sounds enough'.
• Buying too late — premiums in your 40s can be 2–3x what you'd pay in your late 20s.
• Non-disclosure of medical history, smoking, or alcohol consumption — this is the #1 reason claims get denied years later.
• Choosing the cheapest plan ignoring the insurer's Claim Settlement Ratio.
• Picking the wrong policy term — covering up to age 55 when your home loan runs to 60 leaves a gap.
• Not naming a proper nominee — or never updating it after life events.
• Bundling investment into life cover (ULIP, endowment) for 'returns' — typically results in lower cover and lower returns.
• Letting the policy lapse by missing renewal — getting it reinstated involves fresh underwriting.

How to avoid them

Buy young, disclose everything, pick a policy that runs to at least your planned retirement age, and review every 3–5 years as income and dependents change.