4 Term Insurance Myths You Should Not Believe In
A term life insurance policy is an essential investment that every earning person must consider. It offers financial security to the policyholder’s family in case of his or her unfortunate absence. Purchasing a term plan ensures that your loved ones will lead a comfortable life even if you cannot be there for them. However, most people still only care about the term insurance tax benefit and do not see its potential as a life insurance policy.
This is because term plans in India are associated with many myths. Read on to learn about four of them that you must not believe.
- All term plans are similar
Primarily, a term policy offers substantial coverage at an affordable cost. However, that does not mean all the term life insurance policies are the same. Many insurance providers offer a range of term plans with enhanced benefits. For example House Insurance, you can buy additional riders with your existing term policy. Doing that will make your coverage more comprehensive. Insurers offer options to help you choose the suitable cover amount, policy tenure, and premium as per your requirements.
When you are buying a term plan, it comes with the flexibility to create a more effective policy. You can add riders accordingly, and select a term plan, which will take care of the family’s needs. Hence, it is incorrect to say that all term plans are similar.
- Purchasing a term policy when you are young is not helpful
Buying an online term insurance policy allows you to find more viable choices, one of which is the policy duration. There is a myth that buying the term plan at an early age does not prove useful. This is far from the truth. Insurance companies decide the premium amount based on the policyholder’s age and overall health. If they find that you have certain illnesses or you are over a specific age, they will charge you a greater amount.
On the other hand, when you buy the term plan at a young age, the chances of getting a reduced price are higher. When you are young, there are fewer financial liabilities and lower chances of any critical illness. Insurance providers perceive you as a safe customer and offer an economical premium.
- Term policies are like health plans
A life insurance term plan with a critical illness rider may offer you similar benefits as a health insurance policy, but they are not the same. A health plan provides monetary aid if you require healthcare services. The insurance company offers coverage for medical bills. It does not help in case of an unfortunate event leading to your absence.
On the other hand, a term plan provides financial support in case of an untoward incident. If you have a term life insurance policy, it ensures that nominees stay financially comfortable if you cannot be there for them. Moreover, the term plan provides financial cover for the treatment of critical illnesses if you have the appropriate rider.
- Buying a term life insurance policy online is complicated
Getting an online term insurance policy is the easiest thing you can do. Purchasing the plan from the insurer’s website saves you a lot of time and hassle, as there is less paperwork involved. Also, the price of an online term plan is lower, as you are buying it directly from the insurance provider. Other than that, the online purchasing process allows you to quickly customize the policy as per your needs and choose a more suitable payment method. Hence, it is much easier to opt for an online term life insurance policy.
Now that you know the truth, consider purchasing a term plan at the earliest. In these challenging times, a term policy offers you the peace of mind that your family’s future is in safe hands.