Prices Increasing soon Prices Increasing Soon

Top Term Insurance Mistakes to Steer Clear of

Term insurance functions like a financial buffer for your family’s financial security and protection, especially if something untoward were to happen to you. For maximum benefits, avoid the following mistakes and carefully pick the correct term plan aligned to your exact requirements.

Gets ₹1 Cr. Life Cover at just
COVID-19 Covered
The Policybazaar Advantage
Dedicated claim support for family FREE
Upto 10% discount for buying online
Only certified experts will call you on 100% recorded lines
We are rated~
6.7 Crore
Registered Consumers
Insurance Partners
3.4 Crore
Policies Sold

#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply

By clicking on "View plans" you agree to our Privacy Policy and Terms of use

~Source - Google Review Rating available on:-

Life is Unpredictable! Protect your family’s future
Get ₹1 Crore Life cover starting from ₹384/month+
We don’t spam
Check Your Premium Now
Please wait. We Are Processing..
Get Updates on WhatsApp
The Policybazaar Advantage
Policybazaar Advantage Icon
Dedicated claim support for family FREE
Policybazaar team will help and support you at the time of claim. A personal claim handler from our team of experts will get in touch with you when your nominee applies for a claim on our website.
Policybazaar Advantage Icon
100% calls recorded to ensure no mis-selling
We will make sure you get what is promised by the advisors. We conduct regular monitoring of our calls to make sure you get the best experience.
Policybazaar Advantage Icon
Exclusive lifetime discount upto 5% for buying online
The discounts will be valid for the entire policy payment term and is not available if you choose to buy the insurance through offline agents.
Policybazaar Advantage Icon
Advisors available in your city
Our advisors are available in more than 55 cities across India and can help you at your doorstep in understanding the plans and in documentation.
Policybazaar Advantage Icon
Refund at the click of a button
In case you aren’t happy with your purchase, you can cancel your policy hassle-free at the click of a button. We will help you with the cancellation and refund of your policy.

Note: Know more about what is term insurance first before reading this article.

one crore term plan

Term Plans


Life Cover

@ Starting from ₹ 16/day+


Life Cover

@ Starting from ₹ 8/day+


Life Cover

@ Starting from ₹ 12/day+

Incomplete Disclosures

It is extremely important to make full and true disclosures while making a term insurance plan application, even if this leads to a higher premium and even if the policy term is short. If an important health disorder is not disclosed in the application, and if something goes wrong and the cause of the policyholder’s death is traced to that undisclosed health condition, the insurer may most likely dispute the benefit payout and ultimately even refuse to pay altogether, rendering the policy null and void. Naturally, the beneficiaries will receive nothing. 

one crore term plan

Secure Your Family Future Today


Term Plan Starting @ ₹449/month+

Get an online discount of upto 10%+

Compare 40+ plans from 15 Insurers

+Standard T&C Applied

Dependence on Group Life Cover

As in case of health insurance, it is not advisable to depend completely on group life cover even in case of term insurance, since the coverage is rarely enough. Group life covers offered by employers are usually just 2-5 times employees’ annual income, which is not too high.

Opting for a Shorter Tenure 

A huge mistake people make while buying term insurance is that to pay lesser premiums, they take cheaper plans or shorter terms. Unfortunately, this costs more in the long term. For instance, if you purchase a 10-year term plan when you are 25 years old, then at 35, you will require a new plan. By then, your financial responsibilities would have increased and your insurance premium will also go up. Worse still, if your health is not good, insurance may even be denied.

Buying an Inexpensive Plan

Opting for the most inexpensive term plan is not wise – cheaper the policy, higher may be the exclusions and greater are the chances of losing out on essential features like flexibility, important riders, etc. While buying term insurance, some vital points to consider are the guarantee period’s length, convertibility rights, and the company’s financial standing, reputation, customer service and claim settlement ratio. It is wiser to purchase a term plan that is worth more even if it costs more. By comparing term insurance plans online , you may find that paying a little more can offer a range of additional term insurance benefits.

A contrast to this situation is buying too many extra riders – this pushes up the price of the term plan, sometimes even without offering the promised benefits. Always study extra riders to check if they are required.

Delaying Purchase, Getting Less Coverage

The best time to buy a term plan is when you are young and healthy, and ideally soon after you begin earning. Buying a plan early lowers the premiums and offers coverage from unforeseen risks. Besides, as you grow older, you will not have to struggle to get sizable insurance cover.

Note: You can easily calculate the term plan premium by using the term insurance calculator online tool.

Secondly, the objective of a term plan is to assure financial security for the policyholder’s family/dependents if something unfortunate happens to the policyholder. However, many people take a lower sum assured to save on premiums, as a result of which, in case of the policyholder’s demise, the policy funds get exhausted soon, leaving the family stranded.

Ideally, a term plan’s sum insured should be minimum 8-10 times the policyholder’s yearly income. Even though this amount may not be a sure shot assurance that all the family’s financial problems will be taken care of, it does give the family time to figure out the next course of action in case of the policyholder’s demise. It is best to review the needs, age, specific requirements, and lifestyle of each member and get a term plan accordingly.

Hasty Shifting

People often cancel their old term plan in a haste and buy a new plan, when they feel the former is not in line with their expectations. The interim period between purchase of a new term plan and cancelling the old one is delicate because if any problem comes up in this period, the person is left without any coverage. It is therefore advisable to get the new term plan before cancelling the earlier one.

It is also important to renew your term policy (this applies to health insurance policies too) within the stipulated timeframe mentioned in the policy, failing which you may be cash strapped in case of an emergency.

Considering a Single Insurance Company

Not comparing different plans is a huge mistake insurance buyer make. It is recommended to analyze and compare different plans offered by different insurance companies - you may find a similar plan at a lower price compared to the one offered by your previous insurer.

Online insurance web aggregators can help you understand and compare different plans and assist you in getting the best plan as per your needs and budget.

Not Looking at E-Insurance

Out of habit, most insurance buyers opt for the offline mode of insurance purchase, ignoring the E-insurance option. However, online insurance purchase has grown in popularity and helps save time, effort and costs. Any reliable IRDA-approved insurance web aggregator portal can help you select the perfect term plan in sync with your requirements.

Not Understanding the Plan

Understand your plan by reading all the terms and conditions in detail – coverage, inclusions, exclusions, available discounts, etc. Clarify with your insurance provider in case of doubts. If you do not study your plan, you will not be able to tackle the situation in case any disputes arise during claim settlement.


Now, you know all the common mistakes that buyers typically commit while buying term insurance. It’s time to put the learning into practice and save yourself from making such serious mistakes when purchasing term insurance policies.

Note: Check out the best term insurance plan in India and choose one that suits your requirements.

Premium By Age

Term insurance articles

  • Recent Article
  • Popular Articles
05 Jun 2024

Why Should You Consider Inflation When Buying a...

The retail inflation of India rose to 5.69% in December 2023

Read more
29 May 2024

Term Insurance for Individuals with 25K Salary

Securing your family's future is essential, especially when

Read more
28 May 2024

'Har Family Hogi Insured' Policybazaar's Vision...

Empowering Every Household: policybazaar's Commitment to

Read more
23 May 2024

Term Insurance for Individuals with a 35K Salary

Securing your financial future is essential, especially when

Read more
07 May 2024

Term Insurance for 45K Salary Individuals

In life, unpredictability looms large, and while you may

Read more
20 Aug 2014

Term Insurance for Women in India

Term insurance for women is a type of life insurance specifically designed for fulfilling women’s needs and

Read more
03 Dec 2020

What Is Saral Jeevan Bima

Saral Jeevan Bima (SJB) is a simple term insurance plan that offers financial protection for policyholder’s

Read more
13 Apr 2021

2 Crore Term Insurance Plan

2 Crore term insurance provides cover amount of 2 Crore as death benefit to your family in the event of your

Read more
07 Mar 2023

TATA AIA Smart Sampoorna Raksha Param Rakshak Plus

TATA AIA Smart Sampoorna Raksha Param Rakshak Plus is a comprehensive life insurance policy for individuals

Read more
Need Help? Request Callback
View Plans
Download the Policybazaar app
to manage all your insurance needs.