In the video “Don’t Buy TERM Insurance without Watching this,” bekifaayati gives one of the clearest, most honest explanations of term insurance in India.
This guide helps you avoid common mistakes, save money, and choose the best cover to secure your family’s future without getting misled by flashy marketing or aggressive agents.
1. What is Term Insurance and Why Do You Need It?
The video starts with a blunt truth: Insurance is not an investment—it’s protection.
Term Insurance is the purest form of life insurance:
- You pay a small premium.
- If you die during the policy term, your family gets a large sum assured.
- If you survive the term, there’s no maturity benefit.
Key point from the video: You’re not buying returns—you’re buying financial security for your dependents if you’re not around.
2. How Much Term Insurance Cover Should You Take?
Bekifaayati explains the rule of thumb for the right sum assured:
- Minimum: 10–20 times your annual income.
- Better: Cover all loans + 10–20 years of family expenses + future goals (like education, marriage).
Example from the video:
- If your income is ₹10 lakh/year:
- Ideal sum assured = ₹1 crore–₹2 crore.
This ensures your family’s lifestyle continues even if you’re gone.
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3. Common Misconceptions Debunked
The video busts popular myths:
- “Return of Premium is better” – Wrong.
- These plans charge much higher premiums just to give back your own money.
- Invest the difference elsewhere for better returns.
- “Employer insurance is enough” – Wrong.
- Employer cover is temporary. If you change or lose your job, you lose cover.
- Always have a personal term plan.
- “Buying late saves money” – False.
- Premiums increase with age and health risks.
- Best time to buy is now.
4. How to Choose the Best Term Insurance Policy
Bekifaayati shares clear selection tips:
✅ Claim Settlement Ratio (CSR):
- Choose insurers with high CSR (95%+).
- Indicates reliability in paying claims.
✅ Premium:
- Compare across companies. Don’t overpay.
- Avoid costly add-ons unless really needed.
✅ Policy Features:
- Look for flexibility to increase cover later.
- Check if terminal illness, disability riders are useful for you.
✅ Transparency:
- Disclose all health conditions truthfully.
- Avoid claim rejection due to false declarations.
5. When and How to Buy Term Insurance
The video strongly recommends:
- Buy early: Premiums are lowest when you’re young and healthy.
- Online plans: Cheaper and more transparent than buying via agents.
- Annual premium payment: Keeps it simple, avoids costlier monthly fees.
Final Takeaway
Bekifaayati’s video makes it crystal clear: Term insurance is a must-have for anyone with dependents. It’s the simplest, cheapest way to secure your family’s future if something happens to you.
Don’t buy blindly. Do your homework, choose the right sum assured, and pick a trusted insurer.
For detailed guides on choosing the right insurance, investing for your family’s goals, and securing your future, visit Investment Marg. For broader personal finance tips and lifestyle inspiration, explore InkSpireDaily.
FAQs:
Q1. What is the best age to buy term insurance?
As early as possible. Buying at 25–30 is cheaper than 35–40.
Q2. Is return of premium plan good?
Usually not. You pay much more just to get your own money back. Better to buy pure term and invest separately.
Q3. How much sum assured do I need?
At least 10–20 times your annual income plus all debts and future family goals.
Q4. Can I have more than one term insurance?
Yes. You can split large coverage into multiple policies for flexibility.
Q5. Will health issues affect premium
Yes. Be honest in your declaration. Insurers may load premiums or exclude conditions, but non-disclosure can void claims.
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