Common Myths About Term Insurance
Investing in the right financial tool for your family’s future is necessary today. Many types of insurance policies are available in the market that offer a range of financial benefits for a better tomorrow.
Term insurance has recently gained a lot of popularity in the country as a tool that offers one of the most efficient financial assistance in time of need. Features like broader financial security and cost-effectiveness make term life insurance a top choice. Additionally, with the help of a term insurance calculator, you can easily calculate the estimated premium for your insurance plan and make the right choice.
4 Common Myths About Term Insurance
Although term insurance plans are amongst the most popular insurance products, there are a few misconceptions surrounding it. Let us look at the common myths below.
1.They are Limited to Death Benefits Only
- The misconception that term insurance policies are limited to just death benefits for a policyholder has been one of the most common. It is true that the prime benefit of term insurance is providing the insured person’s family with financial support in case of the death of the policyholder.
- However, additional benefits like disability cover, accidental death claim cover, critical illness cover, etc., are all available as add-ons to increase the level of protection the insurer provides. As a combination, you can opt for a custom cover package with increased peace of mind.
2.They are Costly
- People often believe that term insurance policies are costly. However, that is not true, as the premium charged is quite affordable and can fit into the budget of most individuals. In fact, if they are purchased early in the life stage, you can benefit from lower premiums since age is one of the major determinants of a term insurance premium.
3.They are Only Meant for Married People
- There is a common belief that term insurance is a good option for those who are married or have a family as dependents. This is another misconception, as term insurance provides you or your family members with financial assistance for better expense management.
- Even if you do not have any dependents but have a debt like a car loan or a student loan, you surely would not want your parents or loved ones to bear the burden of your loan in your absence. Since every life has equal value, adequate term insurance must be purchased.
4.The Claim Process is Long and Slow
- Another myth around term insurance is that the claim process for settlement in a time of need is highly tiresome and exhausting. However, that is not true.
- Most insurance companies have streamlined the claim process to make it quick and hassle-free for the policyholders. The number of steps you must cover has been limited to submitting the correct documentation to initiate the claim process. Many insurance plans allow you to quickly register a claim online for your con- venience.
Conclusion
A term insurance policy is a life cover that offers you a host of benefits for an economical premium. Before you buy a term insurance plan, it is advisable to understand your needs and compare different plans by weighing their cost-benefits and other features. You can easily purchase term insurance online in a short process and customise the plans as per your requirements by picking the right add-ons.
