A product as simple as the term insurance experiences a hard time in order to gain acceptance from a majority of people. Due to its lack of awareness and understanding amongst the masses, customers think twice before investing in a term insurance plan.
On the contrary, a term insurance policy offers a vast number of features and advantages which are beneficial to the customers. It is always important to stay updated about the facts about a life insurance policy rather than wiggling out of an opportunity like investing in term insurance. If you want to make informed decisions regarding the policies, then busting irrelevant and unnecessary myths is important. Take a look at these 5 most common myths regarding term insurance plans and the uncover the truth behind them:
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List of the myths about term plan:
Myth 1: Term Insurance doesn’t cover the dependents
Whether or not you have dependents, it doesn’t matter when it comes to investment in a term insurance plan. Therefore, purchase a term insurance plan as it is a lot cheaper as compared to other life insurance policies. Additionally, if you want to increase your insurance cover, it won’t be too expensive as compared to purchasing a new cover with a humongous sum assured.
Myth 2: Term Insurance doesn’t allow extension of a cover
The most common myth one can encounter about a term insurance is that there’s no scope for increasing the cover of term insurance. However, this isn’t the case anymore. If a person purchases this plan based on his income at the age of 25, then he can increase the amount as he grows older to the age of 40 years. As the cover is based on your income and the needs of the family, it will cost you more.
Myth 3: Term insurance doesn’t offer returns
Honestly, if you are this person with the mentality that term insurance policy doesn’t provide you with a return, then you should definitely think twice. Being the purest form of insurance, a term insurance policy serves with a high life coverage at a nominal rate. For instance, you can receive a cover of Rs.50 Lakh for a monthly premium of Rs.500. A huge benefit like an insurance coverage should be more than enough to buy term insurance.
Myth 4: Term Insurance is expensive
Due to a growing demand for life insurance policies, every insurance company is keen on providing its customer with term insurance. With the advent of the online term insurance policies, it has become cheaper and affordable to buy term insurance online. This is because the premium rate of online term insurance policies is cheap.
Myth 5: Term Insurance only provides benefits at the time of death
Typically, a term insurance policy provides sum assured to the nominee of the policyholder, at the time of his death. Besides, it may also serve with additional coverage in order to cover unforeseen events like accidents, critical illness, and disability at a nominal rate. Certain companies offer this extra coverage with a selection of pay-out mode. This will ensure that your family is sound and secure even if anything is to happen to you.
Now that you know what is a myth and what is the truth, are you ready to invest in a term insurance plan? Protect your precious ones from all the unfortunate events like financial exigencies in order for them to live a safer and happier life. Along with that, use a term plan calculator to help you save up for more in the future to achieve the dreams of your family.