6 Worst Term Insurance Advices on The Internet You Should Not Be Listening To


The Internet: A place where people go to ask complete strangers for advice on relationships, products, services, and hell, just about anything. When it comes to advice, many of us love to receive it, many of us love to give it, and many of us live by it. However, have you ever considered the amount of advice that circles around which is actually invalid, especially the ones related to term insurance?

Anyone can hide behind a computer screen and play an expert, but not all advice is created equally. There are some common pieces of term insurance advice you should ignore. It’s not your fault if you were following these bits of guidance. Much of this advice floats around so often that we are left feeling like the advice must be true.

So, let’s get to the bottom of some of the falsities that we are told over and over about term insurance. This will allow you to adequately dismiss the misleading information moving forward and buy the best term plan to secure your loved ones.

Buy the Cheapest Term Plan You Can Find

Truth be told, when it comes to term life insurance, we are lured by cheap term plans as we all want the best deal we can get. We often think that “Why get a costly plan when maturity benefits are not an option in term insurance?” However, cheaper premiums should not be the only criteria for deciding which term plan to purchase.

Have you pondered what your ‘cheap’ term protection will do when you pass away unexpectedly? What if your life insurer rejects the claim or the sum assured is inadequate to support your family’s needs, or you outlive the shorter policy term? The whole purpose of buying term insurance will be defied in such case.

If You Are Single or Married with No Children, You Don’t Need Term Insurance

Although this makes sense on the surface, it definitely fails the sniff test when you examine it more closely. Here’s why:

With increasing living costs, your dependent parents or spouse will have to foot the bills after your demise. Additionally, if you have financial obligations like student loans, home loans, your family could get stuck with them.

You might need less term insurance if you are single or have no children but deciding that you don’t need term insurance at all, is an irresponsible generalisation.

If You Have Term Insurance at Work, You Don’t Need Anything More

Most people who work for an employer who provides the option to purchase term insurance, purchase the same from their employer. However, be careful, as workplace group term plans may not provide enough coverage.

Do the math. The group policy premiums are based on the group as a whole rather than each person’s situation. Therefore, less healthy or older people may get a better deal than younger, healthier people. In case you are as fit as a fiddle and young, you can likely find an individual term plan that costs less than your employer’s group policy.

Sign Up for Term Plan with Shorter Policy Period Because It’s Cheaper

Yes, term insurance plans with shorter duration cost less than those with longer policy period. However, if you want coverage to continue after your term is up, you will either need to convert the term plan to a permanent life plan (if your plan allows it) or buy a new term plan after yours expires. Either way, you will be paying a higher premium.

Insurers like Max Life Insurance offer longer-term duration, up to 30 years. Therefore, with an increase in the life expectancy ratio, it is smart to go with a higher policy term and save yourself from the hassles of purchasing a new plan in case your first term plan expires.

Buy Term Insurance Within Minutes

Don’t simply buy a term plan because the buying process is simple and is allowing you to purchase a plan within minutes. Instead, go online and compare different plans and quotes offered by various insurers before you finalise on one. Put simply, avoid making hasty decisions and don’t just rely on one insurer unless you are dead sure about its claim settlement ratio and reputation.

You Need to Invest Somewhere to Save On Tax, So, Buy A Term Plan

Although there is nothing wrong in buying term insurance to reduce your tax liability, in fact, majority of individuals do so, but it would only make sense if bought with proper planning and execution. Refrain from buying term insurance just for the sake of saving on some tax. There are other short-term investments for the same.

However, when it comes to term insurance, get a plan as per your requirements. Don’t end up buying a term insurance plan, to get a higher tax deduction that is not at all pocket-friendly. By doing this, you are only wasting a significant portion of your hard-earned money with zero results.


Term insurance can be complicated; you will hear lots of advice, both good and bad on this subject. However, a little due diligence and education can go a long way in helping you make a smart decision about the future of your near and dear ones.

Always remember: “Don’t let bad term insurance advice rob your family of financial peace of mind.”


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