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4 things about term plan that you should not believe in

4 things about term plan that you should not believe in

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Published: 3 July 2020 7:58 AM GMT

In India, the relevance of term insurance continues to beovershadowed by doubts, as people purchase a term plan only for the tax benefits. The primarybenefit of the term insurance policy is the financial benefit received by the beneficiary upon the unfortunate demise of the policyholder.

In case you are the only breadwinner of the family, buying a term insurance policy becomes essential. For the first time buyers, it becomes difficult to decide the right term insurance policy because of the myths surrounding it. However, these myths are far away from the truth as buying the best term insurance policy is beneficial to you in more than one way.

While you may not be aware of all the benefits, a term insurance policy offers, believing in myths is still not theright choice.

To help you know more about what is term insurance and what are its benefits, first, let us look at some of the myths busted relating term insurance policy:

  1. All Term Plans Are the Same

There are many forms of term insurance policies, differing either in their basic structure or the rider options. Gone are those days when term insurance policies only used to provide death benefits, now they offer enhanced coverage with many options where you can customize the coverage period, policy term, and premium payments.

Apart from offering death benefits, a term insurance policy also provides coverage against many critical illnesses. Also, different insurance companies have different plans based on the options mentioned above. The term insurance policy offers comprehensive coverage at low premium amounts. You can also choose between various term insurance rider options.

  1. Buying Term Plan in Young Age Does Not Help

It is only a myth that buying a term insurance policy at your young age does not help. In your early years, y0u are less susceptible to any disease and have lower responsibilities. Also, if you buy the best term insurance policy in your young years, you can get higher coverage than your adult years at a very nominal premium amount. Besides, the policy period is also increased because of the coverage you get at a young age.

  1. Term Plans and Health Plans Are the Same

Term plans and health plans are different products under an insurance umbrella. Aterm insurance policy offers financial security to your family or loved ones during contingencies, which can also be enhanced with rider options. You can also get coverage against personal accident andcritical illnesses under a term insurance policy.

On the other hand, health insurance offers coverage against medical bills incurred due to various illnesses caused during the policy period. For instance, if you get diagnosed with cancer and succumb to the disease later, a term insurance policy will take care of your treatment costs and thenprovide financial protection to your family after your unfortunate demise.A health insurance policy will not be of any help in such a case.

Source: Shutterstock Source: Shutterstock

  1. Buying Term Plan Online is Over-Complicated

Purchasing a term insurance policy online is the easiest way to buy any insurance policy. Since it does not include any paperwork, it saves you from the great hass

le.Also, purchasing a term insurance policy online can get you discounts as there are no middlemen involved. You can also stay assured of secured payments through various modes that are processed quickly to reach your insurer.

You can also get an instant receipt for your purchase. You can also contact your customer care to solve any other issues.

Protect with the Best Insurance Policy

Many insurance companies in the market offer various term insurance policies as per your requirement. However, it would help if you did not take any decision in a hurry or based on the above myths. You can also search online to know more about these policies. One of the things you can keep in mind is to purchase your best term insurance policy from a reputable insurer, who also has higher claim-settlement ratios.

Term insurance policies offercomprehensive protection against contingencies. You can also customize these plans according to your needs. These term insurance plans are also backed by top-notch customer support services and high claim-settlement ratios, which help you get an overall pleasant insurance buying and claim settlement experience.

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