Term Insurance, despite all its merits, still has people in two minds due to the many myths surrounding it. Here are a few popular myths debunked, so that you can make the most of the simple and affordable solution that is a term plan.
Myth #1: Term Insurance is a Waste of Money
Reality: For most individuals, term insurance premium/day would cost less than a cup of coffee. Really!
A term plan is a pure protection plan and it offers no maturity benefits, but consider the "peace of mind" you get when you know you have taken a step that will financially protect your family even if you are no longer around; that security and assurance is unparalleled. Along with the base cover, you can opt for additional coverage for accident, disability and disease with riders. Add to it the tax exemptions you get for the premium amount and this sounds like a real sweet deal.
Further, some term plans offer the option for monthly income along with lumpsum payout, covering immediate as well as day-to-day expenses, making term plans more comprehensive.
Myth #2: Term Insurance is Only for Those Who Have Immediate Dependents
Reality: A Term Plan will financially safeguard your family against all financial liabilities along with an option to opt for day-to-day expenses cover.
Anyone from the age of 18 till the eligible age, specific to the term plan, can opt for a life cover. Financial wisdom suggests that you should get life insurance early on in life, as you start working, to avail the benefits of lower premium and the policy term should ideally cover your working years, understanding the fact that eventually, at some stage in life, you would need to plan for your family's financial security, even in your absence.
Myth #3: Buying Term Insurance Online is Complicated
Reality: Buying term plans online is a breeze! Simply use the premium calculator; fill in a few details like your age, gender, smoking habits, etc., and get an instant online premium quote. And another 10 minutes to fill up the proposal form and there you go, insured for the uncertain future!
*For a 28 year old non-smoking male. Exclusive of all taxes and cess as applicable