{"id":3741,"date":"2018-11-07T07:00:30","date_gmt":"2018-11-07T01:30:30","guid":{"rendered":"http:\/\/capitalante.com\/?p=3741"},"modified":"2019-02-27T10:49:00","modified_gmt":"2019-02-27T05:19:00","slug":"common-myths-about-term-insurance-plans","status":"publish","type":"post","link":"https:\/\/capitalante.com\/common-myths-about-term-insurance-plans\/","title":{"rendered":"6 Common Myths about Term Insurance Plans"},"content":{"rendered":"<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Term insurance plan is the purest form of life insurance. It is a profitable plan over other kinds of insurance schemes. But people have some common myths about term insurance plans. They actually do not know what term insurance is all about. Due to misunderstanding or some ignorance, many people avoid term insurance plans to secure or ensure their lives. In this column, we will discuss the 6 common myths about term insurance plans and understand the reality behind them. We will also know the benefits of the term insurance plans.<\/span><\/p>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #0000ff;\"><strong><g class=\"gr_ gr_102 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins replaceWithoutSep\" id=\"102\" data-gr-id=\"102\">Term<\/g> insurance plan without any return is not worth<\/strong><\/span><\/h6>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">One very common myth is term insurance just an expense like other utility goods as term insurance does not provide any maturity benefits on the survival of the policyholder till the term period. There are money back policies under term insurance also. If you choose that kind of plan you can get back some amount on the survival of the policyholder. Otherwise, term insurance is itself a profitable deal to make. It charges <g class=\"gr_ gr_103 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins replaceWithoutSep\" id=\"103\" data-gr-id=\"103\">very<\/g> little amount of premium. Here is the comparison table between the term plan and traditional money back policies.<\/span><\/p>\n<ul>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Read also:<span style=\"color: #ff0000;\">\u00a0<a href=\"https:\/\/www.policybazaar.com\/life-insurance\/term-insurance\/articles\/why-is-term-insurance-not-popular-demystifying-the-myth\/\" ping=\"\/url?sa=t&amp;source=web&amp;rct=j&amp;url=https:\/\/www.policybazaar.com\/life-insurance\/term-insurance\/articles\/why-is-term-insurance-not-popular-demystifying-the-myth\/&amp;ved=2ahUKEwjNkOrl-b_eAhVKto8KHb5DCMgQFjABegQIBBAB\" style=\"color: #ff0000;\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.policybazaar.com\/life-insurance\/term-insurance\/articles\/why-is-term-insurance-not-popular-demystifying-the-myth\/\" target=\"_blank\" style=\"color: #ff0000;\" rel=\"noopener noreferrer\">Why is Term Insurance Not Popular \u2013 Demystifying the Myth<\/a><\/span><\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Read also:<span style=\"color: #ff0000;\">\u00a0<a href=\"https:\/\/www.coverfox.com\/life-insurance\/articles\/life-insurance-myths-debunked\/\" ping=\"\/url?sa=t&amp;source=web&amp;rct=j&amp;url=https:\/\/www.coverfox.com\/life-insurance\/articles\/life-insurance-myths-debunked\/&amp;ved=2ahUKEwjNkOrl-b_eAhVKto8KHb5DCMgQFjACegQIBxAB\" style=\"color: #ff0000;\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.coverfox.com\/life-insurance\/articles\/life-insurance-myths-debunked\/\" target=\"_blank\" style=\"color: #ff0000;\" rel=\"noopener noreferrer\">6 Common Life Insurance Myths Debunked &#8211; Coverfox.com<\/a><\/span><\/span><\/li>\n<\/ul>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #0000ff;\"><strong>Term insurance will benefit in case of death of the policyholder<\/strong><\/span><\/h6>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Generally, normal term insurance policy offers the assured payment in case of death of the policyholder. But there are many term insurance plans that offer some additional coverage like accidental death, permanent or partial disability, illness etc. Critical illness can be added to the policy at a very nominal price. Let\u2019s discuss the riders available with the term insurance plan.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\"><strong>Accidental death<\/strong> -Suppose you buy <g class=\"gr_ gr_126 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-del replaceWithoutSep\" id=\"126\" data-gr-id=\"126\">a term<\/g> insurance of Rs. 1 crore along with a rider of the accidental death of Rs. 50 lakh. If you die in an accident, your nominee is eligible to get = Rs. 1 Crore + Rs. 50 Lakh = Rs. 1.5 crore.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\"><strong>Permanent or partial disability<\/strong>-Again, if you meet with an accident and suffer a permanent disability or you become unable to work, you will be eligible to receive the assured sum. You need to avail this rider at the time of buying a term insurance plan with a very nominal amount.<\/span><\/p>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #0000ff;\"><strong>Don\u2019t need as I am single<\/strong><\/span><\/h6>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">If you are single or unmarried still you should buy a term insurance plan. Suppose you have taken a home loan or car loan or education loan or any kind of personal loan and an uncertain demise of you takes place. In that case, your family members are liable to pay the whole amount of the debt you have withdrawn. This becomes more adverse if you are the only bread earner in your family. So, if you buy a term insurance plan on certain demise your family will get the assured sum and with the help of this they can repay your debt and fulfill their future expenses.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Another thing is to remember here that now you are single, but in <g class=\"gr_ gr_92 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins replaceWithoutSep\" id=\"92\" data-gr-id=\"92\">future<\/g>, you will get married and have children. Then you will need to take a term plan. The number of premium amount increases with the increase of age. So, if you delay and get older you will have to pay the much higher premium.<\/span><\/p>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #0000ff;\"><strong>I am not going to die, I have just started my job or career<\/strong><\/span><\/h6>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Young people have a common perception that they are superhumans. Nothing can do any harm to them. It is because they are full of energy, enthusiasm and can overcome any situation. As most of the term insurance policies have no monetary benefit on survival of the policyholder, so people consider term plan policies worthless. But <g class=\"gr_ gr_129 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins doubleReplace replaceWithoutSep\" id=\"129\" data-gr-id=\"129\">here<\/g> most vital question arises what will happen if you die untimely or to say suddenly.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">What your family will have to face on your sudden demise? It is a big question. Here comes the role of term insurance plans. Term plans can ensure the future of your family. As you are young you tend to neglect any worry. But you should take into consideration any unfortunate thing that may happen. So, when you get a job or start earning, you should buy a term insurance plan.<\/span><\/p>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #0000ff;\"><strong>Covered with employee\u2019s term cover for free<\/strong><\/span><\/h6>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Many private concerns provide term insurance schemes to their employees. This is called group insurance scheme. If you work in such kind of a private concern, still you need to buy <g class=\"gr_ gr_108 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-del replaceWithoutSep\" id=\"108\" data-gr-id=\"108\">a term<\/g> insurance plans because,<\/span><\/p>\n<ul>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">You are insured by the group insurance plan <g class=\"gr_ gr_109 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar multiReplace\" id=\"109\" data-gr-id=\"109\">till<\/g> you work for the concern. Whenever you quit the job, or join other concern you are not covered with any insurance coverage.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Again in the group insurance scheme, you cannot set the insured amount, tenure etc. These things depend on the employer. On behalf of you, your employer will decide the amount and pay the premium accordingly.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">So, the smart idea is to buy a term insurance plan for self from any insurance providers in India like LIC, HDFC, ICICI Lombard, MaxBupa etc.<\/span><\/p>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #0000ff;\"><strong>Insurers always reject the term insurance claim for same or other reasons<\/strong><\/span><\/h6>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Many people have a misconception that the insurance companies always turn down the claims done by family members on the certain demise of the policyholder. Here you need to analyze the settlement ratio before buying a term insurance plan. You should focus on the reliability and transparency of the insurer. Usually, insurance policies are based on utmost good faith between the company and the policyholder. At the time of filing the application, you should be sincere and read all the provisions, terms and conditions mentioned in the form.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">In case the insurance company denies settling the insurance claim, you need <g class=\"gr_ gr_94 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins replaceWithoutSep\" id=\"94\" data-gr-id=\"94\">not<\/g> worry. All you need to do is to lodge a complaint before the Insurance Regulatory Department Authority of India (IRDA) which is the apex body or the watchdog of the insurance industry in India. IRDAI ensures smooth reimbursement of the claims that are legitimate. Many beneficiaries have been compensated by the term insurance companies after they lodged a complaint in IRDAI against insurance companies.<\/span><\/p>\n<ul>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Read also:<span style=\"color: #ff0000;\">\u00a0<a href=\"http:\/\/capitalante.com\/8-points-to-consider-while-buying-a-term-insurance-plan\/\" title=\"8 Points to Consider While Buying a Term Insurance Plan\" rel=\"bookmark noopener noreferrer\" target=\"_blank\" style=\"color: #ff0000;\">8 Points to Consider While Buying a Term Insurance Plan<\/a><\/span><\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\"><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\"><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Read also:<span style=\"color: #ff0000;\">\u00a0<\/span><\/span><\/span><\/span><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #ff0000;\"><a href=\"http:\/\/capitalante.com\/6-myths-about-stock-market-and-their-reality\/\" target=\"_blank\" style=\"color: #ff0000;\" rel=\"noopener noreferrer\">6 Myths about Stock Market and Their Reality<\/a><\/span><\/li>\n<\/ul>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #0000ff;\">If you found this post i.e. Common Myths about Term Insurance Plans helpful don&#8217;t forget to share and make a comment so that we have a discussion.<\/span><\/h6>\n","protected":false},"excerpt":{"rendered":"<p>Term insurance plan is the purest form of life insurance. It is a profitable plan over other kinds of insurance schemes. But people have some common myths about term insurance plans. They actually do not know what term insurance is &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"6 Common Myths about Term Insurance Plans\" class=\"read-more button\" href=\"https:\/\/capitalante.com\/common-myths-about-term-insurance-plans\/#more-3741\">Continue Reading<span class=\"screen-reader-text\">6 Common Myths about Term Insurance Plans<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":3540,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[316],"tags":[],"_links":{"self":[{"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/posts\/3741"}],"collection":[{"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/comments?post=3741"}],"version-history":[{"count":0,"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/posts\/3741\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/media\/3540"}],"wp:attachment":[{"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/media?parent=3741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/categories?post=3741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/tags?post=3741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}