A Set of Common Myths Related to Term Insurance that Need to be Busted

The popularity of term insurance has skyrocketed in the past few years. Generally, it is viewed as one of the efficient financial tools to secure and fortify one's family's financial future in case of a mishap like death, disability, or loss of income. But every good thing has its own set of myths and rumors affixed to it that scare people away and prevent them from enjoying its benefits. Let's bust some myths associated with the best term insurance plan and supply factual information to aid you make a knowledgeable decision.

Myth 1: Term Insurance is for affluent people

Fact – People usually assume that only financially stable people can buy an online term plan. Contrary to this popular belief, a multitude of term insurance plans are available at reasonable rates and can fit within the budget of most individuals. It is deemed the most affordable type of insurance.

Your income level does not regulate the need for financial protection because, in today’s time, everybody could use financial safety. If you have dependents or debts, Term Insurance can help you build a vital financial safety cushion irrespective of your income.

Myth 2: Term Insurance Plan is youth-centric

Fact – As you grow old, your financial responsibilities also snowball, as does the requirement for sustaining protection against unexpected events like death or disability. If you're in your 50s or 60s and have managed to do well for yourself financially, it is suggested to buy the best term insurance plan right away instead of stalling it till you get older when risk factors such as illness or injury start kicking in and potentially prevent you from working.

Myth 3: Only the primary wage earner should buy a term plan

Fact - Even if you are not the breadwinner and your spouse works to meet the end needs, you will still need to cover your financial obligations in case of their ill-fated demise. Doing so will help you stay financially independent even when the primary breadwinner is not around to look after you. You can buy term insurance that suits your needs online.

Myth 4: Term Insurance policies do not present any benefits

Fact - Many people believe that Term Insurance policies are only restricted to offering death benefits. Nevertheless, term Insurance policies can come with several riders or add-ons that you can add to increase coverage. You can easily find add-ons like- Accidental Death Benefits, Critical Illness Cover, and Disability Cover that present further protection and peace of mind to you and your family.

Myth 5: You cannot buy Term Insurance policies online

Fact - Many people believe that they must go through intermediaries such as agents or brokers to buy an ideal term insurance plan. Contrary to this, presently, it is not hard to find credible insurance companies that offer the option of buying Term Insurance policies online. Buying online doesn’t just offer convenience, but it is also cost-effective due to the absence of intermediaries. Furthermore, you can compare different plans and select the one that best goes well with your needs and budget.

Myth 6: Term Insurance policies only work for short-term coverage

Fact - Another prevalent myth about Term Insurance policies is that they are only appropriate for short-term coverage. In reality, term Insurance policies can be designed to deliver coverage for up to 30 or 40 years. Furthermore, some insurance companies offer term plans that come with renewal after the policy reaches its expiration date. If you're looking for long-term coverage, choose the top-term insurance plans. You will find an array of it easily with just a click. No need to leave the comfort of your abode to find what will work best for you and your dependents. Look online, and you will stumble upon plenty of term insurance plans.

Myth 7: Term Insurance is nothing but a pure waste of money

Fact - One of the most tenacious myths about Term Insurance is that surviving the policy term leads to a waste of money. There is no denial in the fact that you won't receive a payout if you survive the policy term but you need to think about the peace of mind that comes with knowing that you have financial security. And remember that many term policies have a Return of Premium option, so you can get your premiums back if you live longer than the policy term. Buy Term Insurance and see how comfortable you will feel knowing that your dependents will be financially safe even in your absence.

Myth 8: Term Insurance does not cover accidents

Fact - Term insurance policies typically come with coverage for accidental death and natural causes of death, such as illness or disease. Almost every term insurance policy incorporates accidental death and dismemberment riders that are responsible for additional coverage in the event of accidental death or injury.

Accidental death coverage usually delivers a lump-sum benefit to your nominee in case of your unfortunate demise due to an accident.

Dismemberment coverage means a policyholder will be entitled to receive a proportion of the death benefit if an accident causes you to lose a limb or suffer from a permanent disability.

Myth 9: Term Insurance Policies entail a tiresome claim settlement process

Fact – Now, most insurers present the simple process to file a claim. All you need to do is submit the necessary documents, and the claim will be processed within a few days. Furthermore, the IRDA has made it obligatory that all insurance companies settle claims within 30 days of receiving all the necessary documents from the insured person.

Conclusion:

Don’t allow a set of lies or misconceptions to scare you from buying a relevant term insurance plan that can change your life positively. You can easily find numerous Online Term Plans that will help you fortify the future of your loved ones at reasonable prices. Analyze your requirements, compare different term insurance plans, scrutinize the insurer’s reputation, and make a purchase.