Six Common Misbeliefs Why People Don’t Need Term Insurance
Term life insurance is the simplest and most important of all life insurance options. Despite its growing popularity, there are still a lot of misconceptions regarding term life insurance, particularly about what it is and why we need it. The most cost-effective option to cover one’s life is to purchase a pure term insurance plan. Even though it has numerous benefits, consumers often give it a second thought when purchasing a term insurance plan. It is due to several misconceptions about term insurance plans.
Six common misbeliefs about term insurance
- Online Purchase of Term Insurance Plan is Complicated: For a long time, many people have believed that purchasing term insurance online is complicated. In actuality, though, it is the absolute opposite. Buying a term insurance plan online is the most convenient and hassle-free way to obtain life insurance. With a single click, you can create your policy. Furthermore, it saves money and time. The buyer fills out the application form and submits it on the website to obtain the policy.
- Term life insurance plans are expensive: Term life insurance is commonly thought to be more costly than other types of life insurance on the market. When compared to other life insurance policies, term life insurance policies provide substantial coverage for affordable premiums. The overall scope for classic market plans such as ULIPs, endowment policies, money-back policies, and so on is typically 10% of the yearly premium amount. For example, if you bought one of these plans for Rs 20,000 per year, the coverage would be Rs 2 lakh. This is nothing in comparison to your family’s necessities in the event of your early demise.
- It would need a lot of paperwork to get a life insurance policy: All life insurance companies now have an online presence, thanks to the internet revolution. You can go over your computer or mobile device plans and purchase the policy by paying online. The best part is that there is no paperwork to deal with, making the process simple, convenient, and quick. Companies offer advisors 24 hours a day, seven days a week, to clear your worries and assist you with the policy purchase procedure. Today, with the advancement of technology, purchasing life insurance coverage has become quite convenient.
- Buying term insurance too early and too late in life is not beneficial: Term insurance can be purchased at any time, whether it is early or late in life. Furthermore, purchasing the policy early in life allows you to get it at the lowest cost and get the best benefits over time. However, even older, one does not need to be concerned because term insurance premiums are the most reasonable of all insurance plans. Even if you’re 40 years old and don’t have a term insurance plan, you may acquire one that covers you for Rs50 lakh for a yearly payment of Rs10,000 to Rs12,000. So, over a more extended period, it is not a bad deal.
- I am single, hence I do not need a term plan: Term life insurance is typically considered a policy purchased later in life, such as when you marry and establish a family. It is a common myth that you do not require term insurance if you are not married or have no children. If you have a home loan, a car loan, or even a college loan, you don’t expect your family to shoulder the debt load in the event of an emergency, do you? In such circumstances, the coverage level for life term insurance may be lower than for someone married and has children; nonetheless, this does not rule out the requirement for coverage.
- An insurance plan without any return is not worth it: Well, if you’re one of those people who believes that an insurance plan with no return isn’t worth it, you should reconsider. A term insurance plan offers the most life coverage for the least money. However, a life insurance policy does not provide a refund of paid premiums, but it offers a significant benefit. A life insurance policy protects the future of the insured and their loved ones by providing a large umbrella for a small fee. At the age of 25, for a monthly subscription of Rs 500, one can receive a Rs 50 lakh insurance cover. If the insured person chooses the rider benefit, they will be eligible for a premium refund in the policy.
Term life insurance is a pure life insurance policy that offers substantial coverage at a cheap cost. To dismiss all the myths about it, such as a waste of money, I’m single, or I’m too old, and so on. Get term life insurance today with one thing in mind: it will assure that my family will not face financial difficulties if I am no longer alive. It’s critical not to be misled by falsehoods regarding a product as crucial as life insurance. Life insurance should always be purchased with the knowledge of the facts. Obtaining information on life insurance online has also become very simple, thanks to technological advancements.