Common Myths About Term Insurance Debunked For Young Policyholders
Term life insurance is often considered the simplest and most affordable form of life insurance, offering protection in case of the untimely demise of the policyholder. However, common myths about term insurance lead to misunderstandings, keeping you from reaping its benefits.
Read on to know the truths behind common term insurance misconceptions.
Myth: Term Insurance Offers No Benefits
Fact: While term insurance doesn’t have maturity benefits, it provides invaluable financial security to your family in case of unforeseen events.
Myth: Term Insurance is an Expensive Option
Fact: It offers high coverage at a minimal cost compared to other types of policies. You can also customise your plan to choose an affordable term life insurance.
Myth: Insurance Plan from Your Employer is Enough
Fact: Relying only on employer-provided insurance is risky as the coverage may end when you change jobs or retire. Purchasing your own term plan ensures continuous and adequate protection.
Myth: Claims are Rejected Often
Fact: Most reputable insurers have high claim settlement ratios, often above 95%. Claims are typically rejected only if there is false information or policy violations.
Myth: It's Only Good for Death Benefits
Fact: The primary goal of term insurance is to provide financial protection, but there are more than death benefits of term insurance for young adults. If you want a maturity benefit, you can opt for return-of-premium options at a higher cost.
Myth: Getting Term Insurance is Complicated
Fact: Nowadays, it's straightforward to purchase insurance, especially when you apply online. You can easily compare plans, calculate premiums and complete the entire process digitally.