Busted Myths about Term Insurance Online

Busted Myths about Term Insurance Online

The term insurance plan helps you to secure the future of your family. These days’ life is very uncertain. That is why everyone must buy a term plan to take care of their family in their absence. The insurer provides the death benefit to the family of the insured if the insured dies before the tenure of the policy. You just need to pay affordable premiums to get a greater sum assured in future. There are a lot of tools available online that will guide to select the best term insurance plan. Term plan is a major investment so should be done wisely.

There are a lot of people around the world who still do not understand the value of term insurance plans. They avoid buying term insurance plan thinking that it is not worth investing and would not give them any benefit. But that is not the case. Term insurance is a great help especially to those who are the sole earning members of their family.

People always give a second thought when it comes to buy a term insurance plan. This is because of the myths they have about buying term insurance online. So, here are a few myths that must be busted about the term insurance plans:

• Insurers do not give claims:

People generally feel that insurance companies do not settle the claims of the policyholders. But that is not correct. If you have any doubt that whether the company settles the claims raised by the people, then you must check their claim settlement ratio. It will give you a complete picture of the reliability of the company. Just think of the situation if company would not settle the claims of the people then how people will find the transparency and reliability of the company. So do not worry, your investment is safe with the company.

• Term plans are taken in a later age:

A lot of people prefer buying insurance cover at a later age. It is not wise to take the insurance when you are older. When you buy an insurance plan at an early age then you get greater coverage for affordable premiums. While on the other hand, when you buy term plans at a later age then you get lesser coverage for higher premiums. So if you are planning to buy a term plan then use term insurance premium calculator and buy as early as possible. The term plan will help your family to live a life in your absence.

• Online purchase of term plan is complex:

People avoid buying online because they find it complex. In fact buying term insurance plan via online medium is quite easy and hassle-free. For buying a term plan online you need not to travel here and there. You can just buy a plan by sitting at your home or anywhere else. Buying term insurance online is cost-effective, time-saving and effortless. Not only this, it also saves you from the misselling practices of intermediaries who try to sell you a wrong plan to earn greater commissions. So online is the best medium when it comes to buy a term insurance plan.

• Investing in term insurance plans is wastage:

Insurance company provides only death benefit. A lot of people avoid buying term insurance plan thinking that what if they survive during the tenure of the policy then they will get nothing in that case. But this is not true. You just have to pay affordable premiums for getting the greater sum assured. The insurance company pays a greater amount to the family or nominees of the insured when the insured dies during the tenure of the policy. You will notice that the sum assured that is paid by the company is quite greater than the amount of premium paid in installments.

• Term insurance plan cover cannot be increased:

Here is good news for all those who think that the cover of a term insurance plan cannot be increased, it can be increased. All the companies provide the opportunity of increasing the amount of the term plan cover. Aegon Religare Life iTerm, SBI Life eShield and Bajaj Allianz Term iSecure are some of the term plans provided by the companies that have an option to increase the amount of the coverage. For increasing the amount of coverage, definitely you will have to invest some extra amount. But there is no need to buy another plan when you can get the coverage amount increased.

A final word:

Term insurance is a way to secure the future of your family in your absence. The insurance company provides financial support to the dependents of insured when the insured dies before the tenure of the policy. You should buy the term insurance plan as early as possible as buying term plan at an early age is quite beneficial. When you buy term plan at an early age then you have to pay affordable premiums for a greater coverage. So buy term insurance plan as early as possible. Make sure that you make premium payment on time otherwise your insurance policy will lapse.

Make sure that you do a lot of research work before buying any term plan from any insurance company available in the market. Make the investment wisely after considering various important factors including premium to be paid, sum assured, mode of premium payment, the tenure of the policy, claim settlement ratio and more. Do a comparison between the features and benefits of various term plans as it will help you to select the best term plan. There are a lot of tools available online that will guide you to select the best term plan.

People have a lot of myths regarding term insurance online that must be busted. Some think that it is a complete wastage to buy the term plan while some think that one should buy the plan at a later age.

To check the various misconceptions that people have about the term insurance plans, scroll up the page.