Life Insurance
Life Insurance: Mistakes to avoid
Life Insurance guide: mistakes to avoid.
These are the errors we most often see. Avoiding them can save money and protect claims.
❌ Buying life insurance only to save tax
Choose cover for need first; tax benefit is a bonus.
❌ Treating a savings plan as a substitute for adequate cover
Endowment premiums buy far less cover than term for the same money.
❌ Not disclosing smoking or health issues
This can lead to claim repudiation later.
❌ Forgetting to update nominees
Marriage, birth or divorce are moments to review nomination.
❌ Surrendering early
Early surrender typically returns much less than premiums paid.
❌ Ignoring inflation
Cover that seems large today may be small in twenty years.
❌ Missing premium dates
A lapsed policy loses cover; use auto-pay and the grace period.