Buying a pure term insurance plan is the most cost-effective way of getting one’s life insured. However, it has endless advantages but still, when it comes to buying a term insurance plan, people always give it a second thought. This is due to many myths that surround term insurance plans. Here, we have busted some common myths about term plans, so that the insurance seekers can find the simplest and the most economical solution for getting life cover.
1. An insurance plan without any return is not worth it
Well, if you are one of those people who think that an insurance plan without a return is not worth it, you seriously need to think again. A term insurance plan provides highest life coverage at a nominal cost. However, life insurance policy does not provide any return of premium paid, but on the contrary to this, it has a huge benefit. A life insurance policy secures the future of the insured and their loved ones under the security of giant umbrella for a very low amount. One can get an insurance cover of Rs50 Lakh at the age of 25 years for just a monthly premium of Rs 500. In case the insured person opts for the rider benefit, then he/she can also avail the return of premium in the policy term.
2. All term insurance policies are similar, insurers don’t give claims
The major use of insurance policy is at the time of biggest family crisis. Have you ever thought that what if the insurer turns down the policy at the time of claim? This is where the reliability and transparency of the insurer come into picture. In case of any eventuality, a term insurance plan provides a lump sum amount to the beneficiary of the policy so that the future of your dependents can be secured.
It is never too early or too late to buy a term insurance plan. Moreover, it is very beneficial if you buy the policy early in your life as you can buy it at the cheapest rate and can avail maximum benefits over the time. But one doesn’t need to worry even when he/she is older; the premium rates of term insurance plan are most affordable as compared to the other insurance plan. For example, even at the age of 40 if you don’t have a term insurance plan, you can buy a term plan that provides Rs50 lakh cover at a yearly premium of Rs.10, 000 to Rs.12, 000. So, it is certainly not a bad deal over a longer period of time.
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