In the era of economic fluctuations, it is important that we become financially intelligent and invest in plans that give us tangible returns. Buying a term plan, for example is a smart choice for accruing long-term benefits and financial security in the future. However, many people have second thoughts for buying a term life insurance plan even though it is affordable. This is primarily due to the many myths circulating in the web, which downplay the benefits of term insurance.
In this post, we are debunking a few of these myths that are probably stopping you from availing the best benefits on your term plan.
#1 The Young Workforce Need No Term Insurance
The youth today need to be financially disciplined so that they can safeguard their future from all eventualities. And term insurance is one instrument that helps to do exactly that. When you invest into a term plan at a lower age, say in your 20s, not only do you have to pay lower premiums, you can also increase your insurance cover,as and when required. Thus, even if something happens to you, term insurance will help ensure that your family is financially secure and continues to have a decent lifestyle.
#2 Just An Extra Expense
Most people consider term insurance plans to be an extra burden ontheir finances, since there is no return on the premiums paid. However, a term life insurancepolicy is the most affordable way to get life cover benefits. While, the premium rates are lower than other schemes that offer return on investments, term plans also offer critical illnessor accidental cover.
# 3 Claims Are Not Paid After The Death Of The Insured
When it comes to life insurance, this financial sector is organized and regulated. Thus, if the insurance holder dies, the nominee gets the complete sum assured, as long the claim is valid. The IRDA’s insurance ombudsman scheme ensures the settlement of claims within a specific period. In addition, insurance plans can be purchased from reputed companies, which have an easy claim settlement record. This avoids any hiccups in settlement of claims.
# 4 Term Life Cover Is Just Good If One Has Dependents
Even if one does not have dependents, it is useful to purchase a term plan. It gives benefits to critical illness, accidental cover, and also survival benefits. It helps to survive the financial crunches of medical expenses and also has easy payout options incase of diseases such as cancer.
#5 Early Investment In Term Insurance Plan Is Not Beneficial
Life is full of complexities and unforeseen circumstances. You don’t know at what point of time adversities will hit your life. If you feel that you’re too young to buy a term insurance plan, then you’re living in a misconception. There is nothing too early or too late when you decide to buy a term insurance policy. If you make up your mind to buy a term insurance policy at a young age, then you need to pay a lower premium and avail maximum advantage.
#6 You Don’t Need To Compare The Policies As All Companies Offer The Same Policies
Have you ever invested in a term insurance policy without knowing the claims and advantages that the company is making? Even when you insurance agent resists you to buy a term insurance policy claiming it to be the best don’t forget to do the research part. All companies offer different policies with add-on the cover, maturity benefit,and other advantages. You need to buy the policy according to your requirements. Compare the policies online and then make a wise decision regarding the investment.
#7 Buying A Term Insurance Policy Online Is Not A Safe Option
Often, when it comes to buying term insurance policy online people often think that it’s quite tricky and can be a complex route. However,this is just an apprehension. Buying an insurance policy online not only offers you great rewards but also gives you a chance to compare the policies online and then make a wise decision regarding the purchase of the policy which suits your requirements. The best thing there are no middlemen, and this instantly slashes down the rates of the policies online.
# 8 Company Insurance Will Be Sufficient
Many companies provide group insurances to their employees. However, it has limitations. First, the amount of life cover is insufficient. Even with pay hikes and promotions, the insurance coverage does not exceed, nor, it is at par with rising medical expenses. The future is not under one’s control as these insurances are only valid until one is employed at the company. Retrenchments, cost-cuttings are frequent in companies,and the insurance benefit can be dissolved in such cases. These cases can leave you financially vulnerable and stresses, therefore, to reduce the uncertainty,it is better to have an extra term plan.
It is always better to be safe than sorry. Financial hitches come unexpectedly in today’s economy; it can easily leave you broke. Therefore, you need to have a back-up,and a term insurance is definitely the Plan B for a financially secure future.