Common Term Insurance Myths Busted
Published On Mar 18, 2021, Updated On Apr 23, 2021
Table of Contents
- Common Term Insurance Myths And Facts
Term insurance plans are one of the most helpful and affordable insurance plans available. They keep your family assured and also help you lead a stress-free life with guaranteed coverage under various circumstances. However, the presence of a multitude of rumours makes it difficult for people to sift the truth from the false.
So, to help you make the right choice of getting a comprehensive term insurance plan, we have compiled the most common term insurance plan to bust them down and reveal the truth!
Also Read:- 10 Popular Term Insurance Plans in India
Common Term Insurance Myths And Facts
Following are some of the common term insurance myths which are ot exactly true, read below to find out:
Myth 1: It is too Early to Buy a Term Insurance
One of the biggest presumptions that are always made is that it is too early to buy an insurance plan. It is also one of the most wrong ones. You should always buy a term insurance plan as soon as possible. As you will grow older, there will be more risks involved to get you insured which will result in higher premiums. A not-so-perfect health record may also result in the same.
Myth 2: A Term Insurance Plan is very Costly
In fact, term insurance plans are the most affordable insurance plans. Since there is no investment component, term insurance plans are affordable and cheap. This also makes them a good starter plan to purchase. Nevertheless, their coverage is always high and sufficient.
Myth 3: A Term Insurance Plan Only Provides a Death Benefit
This is one of the biggest myths that keep many from getting a term insurance plan. A term insurance plan provides cover for many purposes besides a death benefit. You can add riders to your basic term insurance plans to cover accidental death, critical illness, disabilities and more. This makes the insurance plan more robust and comprehensive.
Myth 4: Purchasing a Term Insurance Plan is Complex
This is not true at all. A term insurance plan has some of the simplest terms and conditions among any type of insurance plans. All term insurance plans provide you cover within a specified period or "term". In case of your untimely demise or any inconvenience during this term, you will receive the corresponding benefit. However, there is no maturity benefit available.
Myth 5: Single People do not need Term Life Insurance
Maybe you do not need to ensure the financial security of anyone but term life insurance can be helpful for oneself too. It will help you worry less in case of operational costs in case of accidents or case of disabilities. It will also help you with loans taken out for any purpose like home loans, vehicle loans etc.
You May Also Like to Read:- How To Choose the Right Term Insurance Plan?
As evident from the above, there are a lot of misconceptions regarding term insurance plans. Therefore, it is important to wisely judge all factors and be well-informed before buying a term insurance plan.
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.