Mistakes to avoid while buying insurance

An insurance plan can provide maximum benefit, only when it is properly filled and all the facts and records are kept straight.  Insurance is not an investment but a safety net for your family. Mandeep Gill, the co-founder of Labour Law Advisor, has taken the initiative to make people aware of insurance. In an exclusive conversation with Money9’s Priyanka Sambhav, Gill talks about the importance of being a conscious insurance buyer and the misconceptions people fall for.

Q. Tell us about your interest in the insurance domain?

Gill: I feel a person that has gone through or faced similar issues will be able to express them more genuinely. I have myself faced issues pertaining to insurance and hence I feel I can guide people from what I have learned from my experience. Millions of consumers have struggled in either buying or identifying the right policy cover for themselves. Many a time people buy a policy that is not suitable for them and end up paying huge premiums. My father had bought one such wrong policy, where he was paying a heavy premium. We canceled that policy, once we realized that. So, it is important to understand buying a suitable policy as per individuals need.

Q. What are the common mistakes made by customers?

Gill: Many people have this misconception that insurance is an investment. They believe that insurance is the cheapest tool for generating wealth is one common mistake. Another is that people tend to buy a term insurance policy for their senior citizen parents. I believe that can be avoided. Also, a lot of people overlook the importance of buying insurance when they start earning at the beginning of their careers. They should make insurance their priority.