Don’t Buy TERM Insurance without Watching this | Life Insurance ULTIMATE Guide

Some time back, I took a term insurance and being a financial content creator, I thought that I know everything. What mistake can someone make in taking a term insurance? What is so difficult about it? But reading the terms and conditions of these term insurances, I swear I went crazy. It can be so easy to make a mistake while taking a term insurance. I had no idea about this and at the same time I was thinking that we have to make a video for our viewers so that you don't make those mistakes. In this video, you will learn a lot of new things about term insurance and the mistakes that we can do while taking a term insurance. Watch this video till the end and I'm sure that you won't get to hear all these things anywhere else. Mistake No.1 E-Insurance Account We take a policy of 1-2 crores for our family but we never share our documents with our family. And the concept of will doesn't exist in India. So there are very high chances that your family doesn't know about the insurance you take for your family. Hence, E-Insurance Account. E-Insurance Account is an initiative by the government in which you can upload your insurance on a digital platform. And you can share its details with your family and it is free of cost. So make sure whenever you take your insurance, you upload that insurance on E-Insurance. How to do it, what is the procedure, we have put everything in the description. Mistake No.2 Sign MWP MWP stands for Married Women's Property Act. Let me tell you the importance of this act. Assume that a person has taken an insurance of 1 crore and he is getting a loan of 70 lakhs. If there is any eventuality, then the 70 lakhs out of that 1 crore will be his loan payment. And the remaining amount will go to his wife and children. But if you sign this MWP clause in your term insurance, then you will get the full amount. And no creditor will get the remaining loan amount. Female members can also sign this MWP to make sure that their proceeds get to their children and not to any other creditors. Mistake No.3 Ideal Cover If you ask an agent about your ideal cover, he will tell you that he will recommend your salary 20-25 times. Which is incorrect. Your cover should not be calculated on the basis of your salary but it should be calculated on the basis of your expenses. That's why we will tell you a very simple formula that you will not get anywhere else on the internet. And in this formula, we have also considered 7% inflation. And your life expectancy is assumed to be 65. Life insurance amount is equal to current annual expenses into 65 minus current age into 20 divided by 7. So if your age is 30 and your current annual expenses is 30k per month or 3.6 lakh rupees per annum. Then your ideal insurance amount should be 3,60,000 into 65 minus 30 into 20 divided by 7. Which is 3.6 CR. It was a little shocking to see the amount. But this is the reality. And if you are thinking of taking any other loan, then you can add that amount in this cover. Mistake No.4 Claim Settlement Ratio vs. Amount Settlement Ratio Whenever we see a term insurance policy, we definitely see its claim settlement ratio. Which is very important. But it doesn't show you the whole picture. In the claim settlement ratio, you get to know how many percent of people's claim has been approved. But it doesn't tell you how much amount you have got. How much amount did those people claim? Hence, along with the claim settlement ratio, you should see the amount settlement ratio. From which you will know how much percent amount has been approved. The people who had claimed this policy. If we look at the industry standards, then it is 87%. That is, all the people who have claimed this policy, they are getting 87% of their total policy amount. So we should see a policy whose percentage is more than the industry average. That makes sense, right? This is why MaxLife's Smart Secure Plus could make perfect sense for you. MaxLife's amount settlement ratio is way above the industry average. And at 99.51%, it has a very good claim settlement ratio. At MaxLife, you can get a cover of 1 CR for as low as Rs. 700 per month. And a cover of 2 CR for as low as Rs. 1046 per month. Obviously, this premium will vary from individual to individual. This premium is for a 24-year-old healthy non-smoking male. MaxLife also covers 64 critical illnesses which can be added to your base pan at a very nominal price. The link is given in the description. You can definitely go and check that box out. I would still want you to pause the video and read the below-mentioned disclaimer. Mistake No. 5. Relying on group insurance. I have noticed this trend a lot in some time. The company with which you work, they give you a life insurance. And because of this, you don't take any separate insurance for yourself. But please, I request you, don't make this mistake at all. The company life insurance that you have is with you only till you are connected to that company. If you have to leave that company for any reason, or if you are being fired from that company, or if you are not a part of that company for any reason, that insurance stops working for you. And you may face problems in taking separate insurance. So, please get a separate term insurance. Mistake No. 6. Smoking to be declared or not. At this point, a lot of people get confused. Should we tell the insurance company that we are smokers or not? If you are a smoker while taking a policy, then you should inform the insurance company 100%. And if you even vape, then that is also considered as smoking and you should declare that too. But if you were not a smoker while taking a policy, but let's say you started smoking after 4-5 years. What should we do in this case? Let's find out. When you take a policy, your insurance company does your risk underwriting at the same time. It never does it after that, until and unless there is a major drastic change in your life. So, technically you are not obligated to inform your insurance company about it. But there is a limit to it, like 2-3 sticks a day. But if you become a heavy smoker after 4-5 years, like 10 sticks a day, then you should definitely inform your insurance company about it. Same goes with consuming alcohol. Mistake No. 7. 10-15 year accelerated plan. A lot of companies give you this option while taking insurance, that you can pay your premium in 10-15 years and become free. And you also feel that it is right, let's pay the money soon, why delay if we can become free earlier. But we would suggest you to not go for this option. Because what happens is that when you take this option, your premium gets fixed. So when your age increases, you move ahead in your career, your salary increases, it becomes easy for you to pay that amount. So there is no point in taking unnecessary pressure on yourself in the initial years. We would definitely suggest you to opt for a normal plan and not for an accelerated one. Mistake No. 8. Relying blindly on agents or choosing your own product. Okay, I agree that this is not 100% true. But we have often seen that when you buy an offline policy from an agent, your expectations are different about the policy and the product that is sold to you is different. And in this case, we often make a mistake in understanding the policy. Like you must have seen a lot of influencers saying that term insurance is right, ULIP is useless. Or return on premium insurance is absolutely useless. So let me say this on record right now. No insurance product is useless. We say this because products are made in the market, because there is a need for market loan. It's just that the product should align with your financial goals. That's why we think that in such cases, insurance agents may not do a very good job. At the end of the day, life insurance is yours. Your goals should be clear that what is your objective to take that insurance. Whether it's protection, child education or retirement. You should get such an insurance product. The goal of the majority of Indians is very simple before taking insurance. Protection. And in other words, if something happens to us, what is the backup for our family? You can definitely consider MaxLife's online term plan, whose link we have put in the video description. Let us know in the comment section about the 8 mistakes that we have told you. Which honesty did you know? And if this video has broadened your horizon. Before taking term insurance, if you think that if you keep these mistakes in mind, then you can take better insurance. Tell us that too in the comment section. Till then, be careful.