Seven Mistakes People Make When Buying an LIC Policy

Buying in March for tax reasons alone. The deduction is small compensation for a thirty-year commitment that does not fit.

Under-insuring. A ₹5 lakh endowment is savings, not protection; protection needs a term plan sized to income and loans.

Hiding health history or tobacco use at proposal stage. It is the single most reliable way to create trouble for your nominee later.

Choosing a term longer than your paying capacity, then lapsing in year four when the surrender value is worst.

Leaving nomination blank or stale after marriage, divorce or a death in the family. Update it — it takes one form.

Not keeping premium receipts and the policy bond together, and not telling the family where they are.

Never reviewing. A ten-minute annual check of cover, nomination and due dates prevents almost every servicing crisis we see.