Buying a pure term insurance plan is the most cost-effective way of getting one’s life insured. However, it has endless advantages but still, when it comes to buying a term insurance plan, people always give it a second thought. This is due to many myths that surround term insurance plans. Here, we have busted some common myths about term plans, so that the insurance seekers can find the simplest and the most economical solution for getting life cover.
1. An insurance plan without any return is not worth it
Well, if you are one of those people who think that an insurance plan without a return is not worth it, you seriously need to think again. A term insurance plan provides highest life coverage at a nominal cost. However, life insurance policy does not provide any return of premium paid, but on the contrary to this, it has a huge benefit. A life insurance policy secures the future of the insured and their loved ones under the security of giant umbrella for a very low amount. One can get an insurance cover of Rs50 Lakh at the age of 25 years for just a monthly premium of Rs 500. In case the insured person opts for the rider benefit, then he/she can also avail the return of premium in the policy term.
2. All term insurance policies are similar, insurers don’t give claims
The major use of insurance policy is at the time of biggest family crisis. Have you ever thought that what if the insurer turns down the policy at the time of claim? This is where the reliability and transparency of the insurer come into picture. In case of any eventuality, a term insurance plan provides a lump sum amount to the beneficiary of the policy so that the future of your dependents can be secured.
3. Buying term insurance too early and too late in life is not beneficial
It is never too early or too late to buy a term insurance plan. Moreover, it is very beneficial if you buy the policy early in your life as you can buy it at the cheapest rate and can avail maximum benefits over the time. But one doesn’t need to worry even when he/she is older; the premium rates of term insurance plan are most affordable as compared to the other insurance plan. For example, even at the age of 40 if you don’t have a term insurance plan, you can buy a term plan that provides Rs50 lakh cover at a yearly premium of Rs.10, 000 to Rs.12, 000. So, it is certainly not a bad deal over a longer period of time.
4. My company provides Group Life Insurance
If you have a group insurance offered by your company then it’s really great but it is important to check the amount. You can also take advice of the financial advisors who will help you to know that how much insurance coverage you should have based on the current income. Many companies provide coverage, but most of the time it is not enough to provide you full coverage. In order to ensure a proper coverage of yours and your family, it is always advisable to have a term insurance plan. A term insurance plan always ensures total coverage to the policy holder.
5. The cover of a term insurance plan cannot be increased
This is one of the major myths about the term insurance plan. Well, it’s not true. In case a person opts for a plan based on the income at the age of 25 then he/she can increase the amount once they reach the age of 30 or 40 and make it big. Some of the insurance products like SBI Life eShield, Bajaj Allianz Term iSecure, Aegon Religare Life iTerm, etc. provide the option of increasing the coverage of the insurance policy. However, this will definitely cost you more but you don’t need to buy a separate term plan. Besides this, based on the current income and the needs of the family of an individual, anything else will not be able to match the insurance coverage provided by the policy.
6. Online Purchase of Term Insurance Plan is Complicated
From a long time a large number of people have this conception that buying term insurance online is rather complicated. But in reality, it is just the opposite. Buying a term insurance plan online is the most hassle free and the easiest way of availing life insurance plan. You can just have your own policy with just a click. Moreover, it saves extra cent and time. To avail the policy online the buyer just need to fill his details on the application form and submit it on website.
Hope, we have clarified the various misconceptions you had about Term Insurance. For more details, feel free to contact us, we will be pleased to help you.