Do you believe in miracles? Well, sometimes when it is too good to be true, it can be true. You may not think if someone who offers you a villa at a price of a hatchback car or a Mercedes at the cost of LED TV, but when it comes to term insurance, these miracles are possible.
Term insurance or term life insurance provides you high coverage life insurance at a fixed rate of payment for a relevant term. Once you decide to go for a term life insurance, you can expect a sum insured of 1 crore for just few thousand for an annual premium payment.
By now you must be wondering that soon we will disclose the hidden terms and conditions and the harsh reality will step in. However, you will be quite surprised to know that there are no such secret clauses. All you need to do is go through the myths busted in this article and get the best of the term insurance plans.
How To Make The Best Of The Plans
#1 No premium return, not worthy
If you have this belief that the insurance plan, that offers a return of premium paid is the best choice for you, it is high time you must rethink about it. It is true that pure term insurance does not give you back the return paid, but it surely gives you giant financial security for meager payment. To be precise, the monthly premium for term insurance is as small as the cost of a movie ticket.
#2 It’s a liability, not an asset
Just because term insurance plans do not offer any maturity benefit, many think of it as an expense rather than an investment. The main reason for concern is that, if anything happens to the insurer, his/her family gets the huge sum insured, but if there is no such mishappening within the relevant term, they will lose all the premiums paid.
#2 Term insurance is only good for tax saving
We do not deny the fact, that tax saving is one of the benefits of term insurance, but it is not the primary intention of this policy. Before proving the policyholder any tax benefit, the term insurance intends to provide adequate financial benefit to your family at the time of need.
#3 I have lost my chance; this is not the right time
“And it is never too late to start something new. To do all those things you have been longing to do”, Dallas Clayton. Just like it is never too late to start a healthy lifestyle, it is never too late to opt for term insurance. It does not matter whether you are 18 or 40, term insurance has a range of rates that suits your requirement. Term insurance is the most important, affordable and sensible decision for individuals of all age groups.
#4 My group insurance at the office is enough for my family’s financial security
So, do you have group insurance at your office? Congratulations, you have a very caring employer. However, have you ever tried checking the sum insured? If not you should immediately consult a financial advisor to know the details. They will calculate the insurance based on your monthly income. Moreover, at last, what you will see as a result may not be entirely satisfactory.
Offices do give their employees some cover, but mostly that is not enough to safeguard your family financially. Hence, going for term insurance, even though you are insured by your company, is not a wrong decision.
#5 I have enough investments, I do not need anything more
It is good to invest your money in multiple sectors so that you do not face a financial crisis at the time of emergency. However, investments like real estate, fixed deposits, gold, and stocks are too rigid to be used in case of an emergency. So either you will have to save all of your wealth in a savings account or get a term insurance plan.
#6 Term insurance is only useful if I have dependents
With your increasing age, the premiums for term insurance also increases. Hence, it is a lot better to get insured by a term life insurance at an early age. You may not have dependents right now, but there’s no harm planning for the security of your future family, whenever that happens. Also, the sum assured on your existing term insurance is far less expensive than getting a new term policy.
#7 Term insurance does not give the option to increase the cover
No increase in the cover assured with term insurance is the most prominent myth we all carry on our shoulders. If you invested in term insurance at the age of 25, and later at the age of 35 if you require you can anytime increase your sum assured for term life insurance. The increased cover will cost you a little more, but you will not have to enter an entirely new term plan.
#8 To get the most, my policy cover has to be maximum
It is a completely incorrect notion that to enjoy the benefits of term insurance to the max; you will have to settle for the maximum number of years available under the policy. It is ultimately your choice whether you want to insure till the age of 80 or 60. Whatever suits you better give you the maximum benefits.
Best Plans For Term Insurance In 2018
Once you are sure about investing your money into term insurance, it is important to find the best out of the rest. Top 10 best companies for term insurance in India are: #1 LIC
#2 Max Life
#4 Birla Sunlife
#5 Tata AIA Life
#6 PNB Metlife
#7 Bajaj Allianz
#8 SBI Life
#9 HDFC Std
#10 Aegon Life It is a proven fact that term insurance gives the maximum value for your investment. Other than being a simple and basic life insurance policy, it pays your family a fixed sum assured when you are not there to support them.