A Set of Common Myths Related to Term Insurance that Need to be Busted

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A Set of Common Myths Related to Term Insurance
that Need to be Busted
The popularity of term insurance has skyrocketed
in the past few years. Generally, it is viewed
as one of the efficient financial tools to
secure and fortify one's family's financial
future in case of a mishap like death,
disability, or loss of income. But every good
thing has its own set of myths and rumors affixed
to it that scare people away and prevent them
from enjoying its benefits. Let's bust some
myths associated with the best term insurance
plan and supply factual information to aid you
make a knowledgeable decision. Myth 1 Term
Insurance is for affluent people
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Fact People usually assume that only
financially stable people can buy an online term
plan. Contrary to this popular belief, a
multitude of term insurance plans are available
at reasonable rates and can fit within the
budget of most individuals. It is deemed the
most affordable type of insurance. Your income
level does not regulate the need for financial
protection because, in todays time, everybody
could use financial safety. If you have
dependents or debts, Term Insurance can help you
build a vital financial safety cushion
irrespective of your income. Myth 2 Term
Insurance Plan is youth-centric
Fact As responsibilities
you grow old, also snowball,
your financial as does the
requirement for sustaining protection against
unexpected events like death or disability. If
you're in your 50s or 60s and have managed to do
well for
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yourself financially, it is suggested to buy the
best term insurance plan right away instead of
stalling it till you get older when risk factors
such as illness or injury start kicking in and
potentially prevent you from working. Myth 3
Only the primary wage earner should buy a term
plan Fact - Even if you are not the breadwinner
and your spouse works to meet the end needs, you
will still need to cover your financial
obligations in case of their ill-fated demise.
Doing so will help you stay financially
independent even when the primary breadwinner is
not around to look after you. You can buy term
insurance that suits your needs online. Myth 4
Term Insurance policies do not present any
benefits
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Fact - Many Insurance policies
people are only
believe that Term restricted to offering
death benefits. Nevertheless, term Insurance
policies can come with several riders or add-ons
that you can add to increase coverage. You can
easily find add-ons like- Accidental Death
Benefits, Critical Illness Cover, and Disability
Cover that present further protection and peace
of mind to you and your family. Myth 5 You
cannot buy Term Insurance policies online Fact -
Many people believe that they must go through
intermediaries such as agents or brokers to buy
an ideal term insurance plan. Contrary to this,
presently, it is not hard to find credible
insurance companies that offer the option of
buying Term Insurance policies online. Buying
online doesnt just offer convenience, but it is
also cost-effective due to
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the absence of intermediaries. Furthermore, you
can compare different plans and select the one
that best goes well with your needs and
budget. Myth 6 Term Insurance policies only work
for short-term coverage Fact - Another prevalent
myth about Term Insurance policies is that they
are only appropriate for short-term coverage. In
reality, term Insurance policies can be designed
to deliver coverage for up to 30 or 40 years.
Furthermore, some insurance companies offer term
plans that come with renewal after the policy
reaches its expiration date. If you're looking
for long-term coverage, choose the top-term
insurance plans. You will find an array of it
easily with just a click. No need to leave the
comfort of your abode to find what will work
best for you and your dependents. Look online,
and you will stumble upon plenty of term
insurance plans.
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Myth 7 Term Insurance is nothing but a pure
waste of money Fact - One of the most tenacious
myths about Term Insurance is that surviving the
policy term leads to a waste of money. There is
no denial in the fact that you won't receive a
payout if you survive the policy term but you
need to think about the peace of mind that comes
with knowing that you have financial security.
And remember that many term policies have a
Return of Premium option, so you can get your
premiums back if you live longer than the policy
term. Buy Term Insurance and see how
comfortable you will feel knowing that your
dependents will be financially safe even in your
absence.
Myth 8 accidents
Term Insurance does not cover
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Fact - Term insurance policies typically come
with coverage for accidental death and natural
causes of death, such as illness or disease.
Almost every term insurance policy incorporates
accidental death and dismemberment riders that
are responsible for additional coverage in the
event of accidental death or injury. Accidental
death coverage usually delivers a lump- sum
benefit to your nominee in case of your
unfortunate demise due to an accident. Dismemberme
nt coverage means a policyholder will be
entitled to receive a proportion of the death
benefit if an accident causes you to lose a limb
or suffer from a permanent disability. Myth 9
Term Insurance Policies entail a tiresome claim
settlement process
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Fact Now, most insurers present the simple
process to file a claim. All you need to do is
submit the necessary documents, and the claim
will be processed within a few days.
Furthermore, the IRDA has made it obligatory
that all insurance companies settle claims
within 30 days of receiving all the necessary
documents from the insured person. Conclusion Do
nt allow a set of lies or misconceptions to
scare you from buying a relevant term insurance
plan that can change your life positively. You
can easily find numerous Online Term Plans that
will help you fortify the future of your loved
ones at reasonable prices. Analyze your
requirements, compare different term insurance
plans, scrutinize the insurers reputation, and
make a purchase.