Term insurance is a type of life insurance cover that offers financial protection to the family or the nominee chosen by the policyholder in the event of their death. One may opt for a term insurance policy as it can be less expensive than whole life insurance plans. However, choosing the wrong plan or provider and missing key steps in the policy-buying process can result in inadequate coverage for the policyholder and nominees. 1. Withholding key information When buying term insurance plans, one must disclose all the relevant details regarding their health, finances, and personal life. For instance, one may be asked to share the following details with the insurance provider: – Bad lifestyle habits, if any – Existing health conditions – Family history – Annual income When discussing these details, one should always offer accurate and complete information. The insurance agent or underwriter calculates the premium amount based on this information. So, falsification or incomplete disclosure (even if unintentional) makes the insurance coverage void. If the insurance company suspects anything, they can investigate and trace the death to an undisclosed lifestyle choice or health issue and deny the claim. 2. Not exploring options The death benefit typically stays the same throughout the term of the insurance policy.