Here’s How We Debunk the Most Common Term Insurance Myths for You

Oct 01, 2018 | 4 months ago | Read Time: 3 minutes | By iKnowledge Team

Some of the most common life insurance myths and misconceptions debunked.

Debunk the Most Common Term Insurance Myths - Aegon Life

Most people get their information about Term Insurance from second hand sources like friends or family elders. This knowledge is mostly opinionated and devoid of facts, no less full of myths. That’s why, we have got you covered, so that you make an informed decision when it comes to buying a term insurance policy.  

Here are the most common term insurance myths you need to know about:

Myth: No Returns? Not worth it.

Reality: If you’re among those who values returns over financial security, please reconsider. A term insurance plan is the most pocket-friendly insurance product with the highest coverage. You can cover yourself easily for Rs. 50 Lakhs at the age of 25 years for an approx. monthly premium of Rs 500 p.a. You could even opt for premium returns by adding riders to your term insurance plan.  

Myth: Claims are almost always rejected

Reality: The very reason an insurance policy exists is to provide financial comfort in the time of a crisis. The reliability and transparency of your insurer is of utmost importance. Parameters like Claim Settlement Ratio (CSR) help determine how beneficial your term insurance plan with the company will prove to be. Be sure to check your Insurer’s CSR score before you purchase the insurance.

Myth: No need for insurance too early or too late

Reality: First, it’s never too early to buy insurance. Secondly, the earlier you buy insurance, the better off you are at the time of a crisis. You need not worry about premium rates when you get older, especially with a term insurance plan. For example, even at the age of 40 you have the option to purchase a term plan that provides Rs. 50 lakhs cover for approximately Rs. 10,000 to Rs. 12,000. Lastly, it’s never too late to buy insurance because you never know what life brings to your doorstep the next day. Therefore, you should always remain prepared no matter what stage of life you are in.

Myth: Group Life Insurance covered by my Employer

Reality: Group insurance plans offered by most companies provide cover for limited amount, and while any amount of insurance is better than no insurance, it is better to be insured adequately. You can either ask your financial advisor to calculate the right amount of insurance you need or can calculate it yourself for free here. A life insurance should be comprehensive in nature, so it can safeguard your family without compromising on their lifestyle even when you are not around. A life insurance should be comprehensive in nature, so it can safeguard your family without compromising on their lifestyle even when you are not around.

Myth: Fixed cover only

Reality: The biggest of misconceptions regarding term insurance is that you cannot increase the cover with age. Contradicting the myth, Aegon Life’s iTerm Plus provides the option of increasing the coverage of the insurance policy as it matures to a certain age within the plan. While this means that you must pay more premium, it is certainly buying an entirely new policy. Besides this, based on the current income and the needs of your family, any other insurance product will not be able to suffice the insurance coverage provided by a term insurance policy.   

Myth: Online purchase is complicated

Reality: Since a long time, many people have this conception that buying term insurance online is rather complicated. Digitization of the world came far enough 5 years back to prove this myth to be completely baseless. Buying a term insurance plan online is almost as hassle-free as making an online email account – hassle-free and user friendly. It is the easiest way of availing a term insurance plan. You can have your own policy, customized to suit your financial goals at the tap of a few clicks.

Moreover, it saves you the trouble of going to the insurer’s office as compared to the comfort of your own home. What’s more, you can even calculate the amount of premium you need to pay to fulfill your insurance needs online.

So, go ahead and get insured today!

II/Sep 2018/4424


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