Term insurance plans are not only one the most popular policies among people but also the one with the most number of myths to their name. From misunderstanding the policy benefits to having wrong notions about policy objects, you have probably heard a host of misconceptions about it already. So, it’s time to bid goodbye to those myths and embrace the truth. Here’s busting the top five myths about term plans.
Myth 1: A term plan has no returns and isn’t worth it
It is true that you will not get any returns on the premiums you pay for the term plan. However, this is no reason to stay away from the policy. After all, you get the highest life coverage for a minimal amount with these plans. Your monthly premium can be as low as INR 500, whereas your insurance cover can be INR 70 lakh.
Myth 2: Too young to get term insurance
No one is too young to get term insurance. In fact, the best thing you can do is to get an HDFC Life Term Insurance Policy right after you start working. You are typically in your early or mid-twenties when you get a job. During this time, you are in the pink of health and do not have many financial responsibilities to deal with. So, instead of waiting till your forties to get insurance, get it in your twenties.
Myth 3: I have group insurance from my company
It’s great that your company is offering you group insurance, but did you check the insured amount? Do you have adequate coverage as per your current income? A common problem with group insurance from employers is that they fall far short of the coverage you need for yourself and your family. Thus, instead of relying solely on the coverage offered by your company, get the additional assurance of a term insurance policy.
Myth 4: The prime objective is to save taxes
While there is no denying that term plans are immensely helpful in saving taxes, don’t think of them as solely tax-saving tools. In fact, tax exemption is just an additional advantage they offer. The main reason why people get a term plan is to secure the financial future of their families and even themselves after they retire.
Myth 5: Purchasing term insurance online is risky
It has been quite a while since the insurers have gone online with their policy offers. Nowadays, you can purchase any insurance policy you want online, and there is no risk involved in it. Just make sure you read the offer document in detail and buy the policy from an authorized website. If you still have any doubts about a policy, then call up customer support and talk to them. Do not apply for a policy without getting all the information, and you’ll be safe that way.
If you have been letting these myths stop you from getting a term plan, then don’t wait anymore. Now that you know the facts, apply for the insurance right away.