Out of the many life insurance plans available in the market today, one stands out because of the coverage it provides and the affordable premiums associated with it. It’s the term insurance plan. When you get a term insurance plan, you are getting your life insured cost-effectively. While the benefits of term insurance are quite high, many individuals have made up their minds about the plan by hearing or reading rumours about it.
These rumours may hinder their family from getting decent insurance coverage if something happens to them. It would be better if you learned about these myths and rumours floating around about term plans, as you may miss out on a plan that provides comprehensive coverage.
Some Myths About Term Insurance Plans:
- Insurance policies without any returns are worthless:
Most people seek out and prioritise insurance plans that offer assured returns. The first and foremost function of an insurance plan is to ensure financial protection for your family in your absence. Term insurance plans provide extensive life coverage at affordable costs. It is a misconception that pure protection term plans are not worth purchasing because they do not offer any returns. On the contrary, term plans are an excellent way to ensure your family’s financial stability when you cannot take care of them.
- Purchasing term plans too early or too late is not advantageous:
You can buy a life insurance term plan at any stage of your life. While there is no restriction on how early or late you want to purchase a term plan, it is beneficial if you do so early on in your life. This can enable you to buy the plan at the cheapest rate possible and get excellent coverage benefits. However, one should not worry if they need to buy term insurance when they are older since the term plan premiums are most affordable compared to other insurance plans.
- All term plans are similar, and insurance companies do not provide claims:
Term insurance policies are most helpful when the beneficiaries of a deceased policyholder are going through a crisis. Each family has separate financial needs and hence, even terms plans are designed to be quite flexible. You could choose a cheap term insurance plan and still enjoy adequate insurance coverage for your loved ones.
Moreover, the claim settlement of a term plan can be smooth and hassle-free if the policyholder had ensured the submission of correct details while buying the term plan.
- The coverage from a term plan cannot be increased:
This is one of the biggest myths about term insurance plans. It is not true. If an individual has opted for a plan based on their income at the age of 25, they can increase the amount once they are 30 or 40 years old. Many insurance companies enable policyholders to adjust their insurance coverage as per their changing needs. This removes the hassle of having to purchase a new plan for meeting your financial needs.
- Buying a policy online is complicated:
A high percentage of the population is often under the impression that buying online term life insurance is complicated. On the contrary, it is quite simple to buy online term life insurance. You can finish the purchasing process with a few clicks and without any issues.
Hence, it is important that when you’ve decided to purchase an insurance policy, you research it thoroughly and learn about the features they provide. Conducting your own research is far more beneficial than making decisions based on baseless rumours and myths.