Term insurance plans are often associated with myths. Despite being a cost-effective, long-term solution to protect loved ones from financial risk; these myths deter many prospective buyers. Here we address these myths one by one, so that you make an informed decision for future.
Myth#1 Single People Don’t Need Term Insurance
Lot of people think they don’t need the best term insurance policy, till they are married or have kids. However, even if you are single you might have debts like car loans, home loans, or credit card dues. You surely don’t want to burden your family with debt, in your absence. Also, if you are a breadwinner for your family, a term plan will provide them with a financial cushion to fall back on.
In case you are wondering whether you can afford a plan, consider using a term insurance premium calculator to help figure out the apt cover amount for you.
Myth#2 Your Company Offers a Group Life Insurance Which is Enough
The coverage amount in group life insurance policies might not be appropriate to protect your family. While you don’t have to pay premiums, you might miss out on several benefits of an individual term insurance policy. Along with reasonable premiums, this plan can offer seamless online application process, rider options, terminal illness benefit and more.
Myth#3 Its Expensive to Purchase Term Insurance
These policies are affordable, and at the same time provide extensive coverage. The sum assured can start from ₹20 lakhs to higher amount. If you choose an increasing term insurance plan, the coverage can increase every year at a fixed percentage. All this can be availed at a reasonable cost. If you are a non-smoker, your premium amount can be further reduced. Consider using a term insurance premium calculator to be clear about your premium amount and frequency.
Myth#4 Purchasing a Term Insurance in Time Consuming
You can search for this insurance and purchase them in a hassle-free manner through online KYC process. It is also possible to compare various plans online to make an informed choice. Purchasing online means you might not have to consult an agent, which saves a lot of time.
Myth#5 Term Insurance Claims Often Get Rejected
If you provide all details regarding your income, family members, and medical history correctly to the best of your knowledge, claim rejection chances are reduced. Make sure to be honest about your lifestyle habits. You can also ask for a term insurance policy document in Hindi, to understand all exclusions in a proper way. This will prevent your family from facing hassles in your absence.
There are many more such myths surrounding term insurance plans. Be sure to understand what is true and what is not to make informed decisions.