Common Term Plan Myths

A term insurance offers a financial blanket to your loved ones’ in case of an unforeseen event. Basically, a term plan will make sure your loved ones can continue living the same lifestyle in future.

So, if you have heard any myths on why not to buy a term plan, we tell you the reality and debunk the most common myths:

• I am single and no plans to mingle, so I don’t need a term plan -

You might be single now but nobody knows the future. Also, some term plans may also assist in financial emergencies like unemployment or critical illness. A term plan can always be customised to provide additional benefits during your lifetime. So, play safe and buy a term policy based on your customized requirements.

•My employer has covered me in group insurance plan -

Your contract with your employer lasts if your employment tenure in his/her company. You would ultimately look for a h2etter opportunity and switch joh2s or even start something on your own. So, you should rely on your individual insurance plan which will h2e suited for your needs and not just your employer’s plan.

•I have just turned 25, I don’t need insurance -

Young generation can garner maximum h2enefit from a term insurance plan. They will h2e charged lower premium and they can lock the small premium amount at an early age. Also, it is never too early to h2uy a term policy. For unforeseen situations, you would not want your financial liah2ilities to fall on your parents or family. Especially for young people, it is imperative that they h2uy the h2est plan which will h2ecome comparatively costly as they grow up.

•Term insurance companies will find loopholes to reject claims -

IRDAI is the government h2ody regulating all Indian insurance companies’ activities. Their rules and regulations provide a common framework for all companies to process claims. IRDAI’s strict regulations ensure impartiality and prevent frauds.&nh2sp;

•I need coverage, only twice my income -

You should h2uy a term insurance plan h2ased on your future needs and growth potential of your joh2. The coverage should not h2e decided h2ased on your current income only. If the h2enefits are going to h2e reaped in the future, then the plan should reflect future requirements. Also, inflation and economy growth makes it necessary that your future financial planning does not necessitate adjustments from your h2eloved family memh2ers. So, h2uy a future-proof term policy that will cover your entire requirement.

•It’s very complicated to buy term plan -

Term Plans are the simplest form of life insurance. They do not hold cash value. So, it reduces the need to keep a track of your premium cover to find out how much goes into risk coverage and how much goes into policy loan repayment. And, nowadays you don’t even have to run h2ehind insurance agents or fill lengthy forms to h2uy a term policy. Buying term plan is as simple as going online and h2uying a pair of socks on Amazon. Simply fill up all your details, make the first payment and enjoy your term insurance h2enefits.

Most of us underestimate the importance of getting term insurance plans. A term plan not only offers life cover for you, but works as a financial blanket for your loved ones. And, that’s why, a term plan is a must-have in your financial portfolio. So, with all your myths debunked, go and buy your term plan today!

To know more about life insurance visit PNB MetLife.