Busting Top 5 Myths About Life Insurance
Published On Feb 02, 2022 11:10 AM By InsuranceDekho
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Life insurance provides financial security to a person's loved ones in the case of his or her death. Basic life insurance plans, on the other hand, might not always provide all of the protection that a person requires. To increase coverage, a person would be able to add one or more insurance riders. Some insurance plans even cover some riders, while others do not.
The most cost-effective option to cover one's life is to get a pure term insurance plan. Despite the fact that it has several benefits, consumers often give it second thought when purchasing a term insurance plan. This is due to a number of misconceptions about term insurance plans. We've debunked some common misconceptions regarding term plans so that those looking for life insurance may select the simplest and most cost-effective option. To know more on life insurance myths that got busted, read on.
Busted Myths Around Life Insurance
Following are some of the listed busted myths about life insurance -
MYTH - It's not worth it to invest in an insurance policy that doesn't pay off.
FACT - In addition to serving as a financial cushion for your family, certain life insurance plans provide extra benefits to the life assured. ULIPs, for example, offer life insurance as well as investment opportunities, whereas an endowment plan offers both life insurance and savings. Aside from this, child insurance plans and retirement plans may be useful in helping you plan for a better future for your children and yourself. Furthermore, premium payments are eligible for tax benefits under Section 80C of the Income Tax Act.
MYTH - All term insurance plans are the same, and insurers do not provide claims assistance.
FACT - The most common occasion to use insurance coverage is during a serious family catastrophe. Have you ever considered what would happen if the insurance declined the coverage at the time of a claim? This is when the insurer's dependability and transparency come into play. A term insurance plan pays a lump sum payment to the policy's beneficiary in the event of a disaster, ensuring the future of your dependents.
MYTH - Term insurance should not be purchased too early or too late in life.
FACT - Term insurance can be purchased at any time, whether it is early or late in life. Furthermore, purchasing the insurance early in life allows you to get it at the lowest cost and reap the greatest advantages over time. However, even if one is older, one does not need to be concerned because term insurance premiums are the most reasonable of all insurance plans. Even if you're 40 years old and don't have a term insurance plan, you may acquire one that covers you for Rs50 lakh for an annual payment of Rs10,000 to Rs12,000. So, over a longer length of time, it is not a bad deal.
MYTH - A term insurance policy's coverage cannot be expanded.
FACT - This is among the most common misconceptions regarding term insurance. That isn't the case. If a person chooses a plan based on income at the age of 25, he or she can increase the number after they reach the ages of 30 or 40 and build a substantial portfolio. Some insurance plans, such as SBI Life eShield, Bajaj Allianz Term iSecure, Aegon Religare Life iTerm, and others, allow you to increase the insurance policy's coverage. However, this will undoubtedly be more expensive, but you will not be required to purchase a different term plan. Aside from that, nothing else will be able to compare the insurance coverage offered by the policy depending on an individual's current income and family's demands.
MYTH - It's Difficult to Buy Term Insurance on the Internet.
FACT - For a long time, a big number of individuals have believed that purchasing term insurance online is difficult. Purchasing a term insurance plan online is by far the most convenient and hassle-free way to obtain life insurance. Furthermore, it saves money and time. The buyer just fills out the application form and submits it on the website to obtain the coverage.
Some of the fallacies concerning life insurance coverage have been debunked by the facts offered here. As a response, you must not be deceived and lose out on the chance to offer financial stability for your family, that will assist them in navigating tough times after your death.
Also read- Is Term Insurance Expense Or Investment?
Why Medical Tests Are Important Before Purchasing A Term Insurance Policy?
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.