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7 Biggest Mistakes Made When Choosing an Insurance Policy

Choosing the wrong policy can cause you to pay money for nothing for years or be penniless when needed. Here are 7 deadly mistakes to avoid, distilled from the experiences of thousands of users.

Common Mistakes

  • Insufficient Coverage: Buying only enough insurance to cover the loan (forgetting the family's livelihood).
  • Looking Only at Price: Choosing cheap policies with narrow scope.
  • Ignoring Inflation: Not calculating that fixed coverage will melt over the years.
  • Untruthful Declaration: Hiding smoking (Leads to rejection of compensation).
  • Not Updating Beneficiary: Not updating the policy in cases of divorce or new children.

Frequently Asked Questions

How to fix the inflation mistake?
By choosing an indexed policy or increasing coverage every year.
I gave a false declaration, what happens?
When the insurance company realizes the situation, it cancels the policy and does not make payment.
Can I change my policy?
Yes, you can cancel your current policy and apply for a new one at any time.

Authority Note & Disclaimer

This content is for general information and educational purposes only. It does not constitute professional financial advice. It is recommended to consult a licensed insurance consultant or financial expert before making insurance decisions. Although Premium Peek is meticulous about the accuracy of the content, it cannot be held responsible for changing legal and economic conditions.