What are the misconceptions that you should not believe about a term plan?
There are many misconceptions about term life insurance policy which often overshadow its importance. For instance, people usually purchase it as a tax-saving tool rather than a pure protection plan. However, the primary benefit of a term plan is the financial advantage given to policy nominee upon the untimely demise of the insured person.
If you are the sole earner of the family, then purchasing a term plan is inevitable for you. And if you are a first-time buyer, then it becomes quite tricky to select the term life insurance policy due to various misconceptions around it. Myths are far away from reality as purchasing the best term insurance is essential and beneficial to you in more than one way. While you may not know about all the advantages of a term plan but believing the myths are more dangerous and could mislead you from your buying decision.
To assist you with finding out about what is term life insurance policy and what are its advantages, let us first know misconceptions related to it.
- All term insurance policies are the same
There are numerous types of term insurance policies which either differ in their basic structure or the choice of riders. Earlier term plans only use to offer a death benefit, but now they provide extended insurance coverage, option to customise the policy term, premium payments and add-on benefits. Term policies also provide coverage against critical illnesses or any mishap due to accident. However, different policies have different inclusions and offers, and you should select the one as per your requirements.
- Purchasing a term plan in young age does not help
It is yet another misconception about the term life insurance policy that buying a term plan at a young age does not help. When you are young you have fewer chances of being prone to any disease and have lesser responsibilities. Therefore, if you buy a term plan online at a young age, you can get higher coverage at considerably low premiums along with several other benefits. Moreover, you can also get extended coverage while buying term plan at early stage in life.
- Health plan and term plans don’t have any difference
Although both health plans and term plans come under the insurance category, but they are not the same. Health insurance offers coverage against medical costs of various ailments caused during the policy term. Whereas the term insurance policy provides financial protection to your family in challenging times. It also includes rider option for other emergencies like critical illnesses and accident. For instance, if you get diagnosed with a disease like cancer, then health insurance will provide the treatment costs (as approved in the policy). While a term plan will provide financial assistance in your treatment costs and in case of your demise due to the illness, your family will receive the death benefit.
- Purchasing a term plan online is complicated.
Buying a term plan online is the most effortless approach to purchase any insurance policy. Through online medium, you can look into various policies, compare, get quotes and no paperwork involved which make the process hassle-free and also saves time Additionally, buying term life insurance online can get you attractive discounts as there are agents involved. You can also be sure about the payments made as they are quickly processed, and you instantly get the confirmation and receipt. You can likewise contact the customer care of the insurance provider to tackle some other issues.
- The best policy in the market is ideal to buy
Numerous insurance companies in the market offer different term life insurance policies as per your requirements. But you should not decide in a hurry; you should research about various term plans and understand them. However, one thing that you must remember is to buy term insurance from a credible insurance provider having a good claim settlement ratio.
Needless to mention that term insurance policies offer complete financial protection during emergencies. They can be modified according to your requirements. The insurers are backed by high-end customer care service to help clients anytime. So rather than going by what people say, you should always do research by yourself or speak to the insurance experts of the insurance companies or insurance aggregators like BimaKaro.in and then make a wise buying decision.