Learn from other people's mistakes
Insurance isn't something you buy often. Which means most people get it wrong. And the consequences don't show up until years later.when you really need the money.
Here are the mistakes we see over and over again.
Mistake 1: Treating insurance as investment
"This plan gives guaranteed returns AND life cover!"
Run away.
Insurance is for protection. Investments are for growth. Mixing the two (like ULIPs or endowment plans) means you get mediocre protection AND mediocre returns.
Better approach: Buy term insurance for protection. Invest separately in mutual funds or PPF.
Mistake 2: Buying less coverage to save premium
"₹5 lakhs should be enough."
One major surgery costs ₹10-15 lakhs. One cancer treatment can cross ₹30 lakhs.
₹5 lakhs is not health insurance. It's a discount coupon.
Better approach: Buy adequate coverage. The premium difference between ₹5 lakhs and ₹15 lakhs is often just ₹3,000-4,000 per year.
Mistake 3: Hiding health conditions
You think you're being clever. The insurance company will figure it out eventually.
When claim time comes, they investigate. They access hospital records. If they find undisclosed conditions? Claim denied. Policy cancelled.
Better approach: Disclose everything. Pay the loaded premium if necessary. At least your claims will actually get paid.
Mistake 4: Ignoring waiting periods
Buying health insurance after you're diagnosed with a condition? That condition won't be covered for 2-4 years.
Buying insurance when you're healthy is literally the point of insurance.
Better approach: Buy insurance when you don't need it. That's when it's cheapest and covers everything.
Mistake 5: Not reading exclusions
Somewhere in your 40-page policy document, there's a list of things that aren't covered. Most people find this list only when their claim gets rejected.
Better approach: Read the exclusions section (or have your advisor explain it). Know what you're not covered for.
Mistake 6: Buying from random agents
That guy from your friend's office. That relative who's "in insurance." That pushy caller who won't stop following up.
Their incentive is to maximize commission, not to find you the right policy.
Better approach: Work with someone who explains products honestly and doesn't push the most expensive option.
Mistake 7: Never reviewing your coverage
You bought insurance 10 years ago. Since then, you got married. Had kids. Bought a house. Got a bigger salary.
Is your old coverage still enough?
Better approach: Review your insurance every 2-3 years. Upgrade as your life changes.
The cost of these mistakes
We're not talking about minor inconveniences.
We're talking about claim rejections that leave families scrambling for lakhs.
We're talking about life insurance payouts that don't cover even half the outstanding home loan.
We're talking about people who thought they were covered, only to find out they weren't.
How to get it right
Insurance is complicated. That's why advisors exist.
But not all advisors are the same. Find one who:
- Explains things in plain language
- Recommends what you need (not what pays highest commission)
- Is there when you need to file a claim
That's what we try to be at YASHURE.