When it comes to term insurance plans, there are tons of perceptions doing the rounds. The real identity of the term insurance plans is lost amongst the judgements made about it. Trust us, a term insurance plan is more than these false myths. An ideal term plan helps the investor to accomplish his and his families' life goals.
Before you buy term insurance, you must know the basics of term insurance plans. Understanding the deliverables of term insurance is essential to make an informed decision in times of contingencies. In this article, you’ll find everything about term insurance plans. Take a look:
What is a term insurance plan?
Term insurance plans are not only economical but also the purest form of life insurance. It offers a coverage amount to its policyholders at an affordable rate. Moreover, it provides the beneficiaries with death benefits. The nominees can accept the death benefit either in a lump sum or monthly instalments.
On the other hand, if the policyholder survives the policy, it is advised to repurchase the policy post its expiry date to ensure you remain covered against uncertainties. When the policy expires, the selected premium and coverage are no longer valid. A majority of buyers think twice before investing in the term insurance plans. The myths and perceptions about these policies often lead to delay in the purchase. Hence it is essential to bust these myths to utilize its multiple benefits. Here’s a look at the most common term insurance myths debunked:
What are the five myths debunked of term insurance plans?
Myth 1: Term insurance plans can only be purchased offline
Due to the rise of E-commerce, insurance companies have made available online term insurance plans. All you have to do is log in to the insurance Company’s website, pay the premium amount online, and submit the documents on the website. Check with your insurer in case they need medical tests.
Myth 2: An investor cannot extend the coverage of term insurance plans
One of the most common myths about term insurance plans is that it does not allow the extension of coverage. However, this is not the case with term plans. Typically, the coverage depends on the age of the policyholder. For instance, if a policyholder purchases a term plan at the age of 25, he can increase the coverage by the time he crosses the age of 30 years.
Myth 3: The term insurance plans are similar to one another
Life insurance policies are never similar to one another. They are entirely different in their approach. Whether it’s the features, benefits, and premiums, a life insurance policy like a term plan cannot be similar to any other policy. The types of term policies depend on the insurer, hence, there’s no chance of familiarity with one another.
Myth 4: Term insurance plans are the most expensive.
Term insurance plans are affordable Also, the premium of online term insurance policies are cheaper as compared to offline term insurance, due to the zero involvement of agents.
Myth 5: The claims under term insurance plans are always rejected
The policyholder must thoroughly read the terms and conditions of the term policies. Reading the terms and conditions will help to understand the inclusions and exclusions if any. If you claim within the boundaries of the exclusions, it will never go rejected. Other ways to avoid rejection of claims is by paying the premiums regularly, filling the claim form accurately, and submitting all correct details and making proper disclosures on heath and related aspects.
To sum up, the above are the misconceptions that stop you from investing in a term plan. However, a term plan not only protects your family members but also helps them live a sober lifestyle in your absence. In the end, the sound security of their family matters the most to every family man.