5 Myths about term insurance plans that you should not believe

While buying a term insurance plan we usually hesitate, may be because we don’t want to waste our money or may be because we think it’s just don’t accept the fact of leaving this world someday. A lot of denial and confusion, yet we don’t finalise mainly because of the myths people have made up for this type of life insurance.

So, let’s unfold the fact sheet here and stop believing such myths that would detach you from the truth!  

5 Myths about Term Insurance You Should STOP believing as soon as possible

To begin with, let’s have a look at some of the important myths that may transform your outlook and force you to make a firm decision for buying a term plan.

Myth1#

My organization is generous enough to offer me a term insurance already. So I don’t need to buy one!. You might be luckier because your employer has already made provisions for your term insurance. However, you may not be aware that these plans are not portable. To add to it, the moment you leave your organization, your term insurance coverage becomes zero! Therefore, expert’s advice to buy an individual term insurance plan as per your needs and not to be dependent upon your employer.

Myth2#

I have heard that life insurance companies always find excuses to settle my claims. IRDAI, the governing authority of the insurance industry, keeps a keen watch on the number of claims registered and therefore ensures that all the genuine claims are settled by life insurance companies. But, in some cases, if you feel that your claims are rejected by the insurance company, you can directly file an appeal with the IRDAI. So, stop thinking too much about the claims getting rejected. You can watch out the claim settlement ratio of the insurance companies you wish to opt for.

Myth3#

I have been a disciplined saver, therefore, I don’t need a term insurance plan. You have been so good so far to make enough savings that might last for your retirement life. But, what happens post that? Do you think that your spouse or dependent children would be able to bear the expenses in your absence? For example, expenses on your mortgaged property or children’s education, etc. So, get this MYTH out of your mind right away!

Myth4#

I will get a feeling of, ‘waste of money’ in case I outlive my policy term. Since term plans are traditional plans, they will definitely offer financial security to your beloved family in your absence. They will also give you a sense of relief and peace of mind. This itself is a BIG return you could ever ask for! So, stop believing in such Myths that don’t hold any truth and buy a term insurance plan TODAY.

Myth5#

I find term insurance too complex and confusing. Term insurance plans are the easiest and simple forms of life insurance plans. They do not hold any cash value. So, it doesn’t make sense for you to break your head in analysing how much goes into risk and loan repayments. The best thing to do is buying a term insurance plan online.