One of the biggest worries most of us have in our lives is the thought of the well-being of our families after we are no longer around. We wouldn’t want our loved ones to go through a financial crisis in the future and this is why a lot of people are increasingly opting for term life insurance.
Some of you might be wondering what is term life insurance and how will it help our families? Well, term insurance is a type of insurance that guarantees a certain amount of payment if the insured person dies during a specific term.
After the term expires, the policyholder has the option of renewing the term or terminating it.
Despite being beneficial to you as well as your loved ones, a lot of people refrain from buying term insurance, and the major reason behind it is misinformation.
Certain things, despite being wrong are so strongly associated with term life insurance that people believe them to be true.
In this article, we will attempt to debunk some myths about term life insurance.
Term life insurance is a waste of money since it only offers death benefits
We agree that it does not pay the policyholder a lump sum amount after the term expires, like a lot of other policies in the market.
However, you simply cannot ignore the fact that the financial future of your family may depend on this term insurance in case of your untimely demise.
Term life insurance is expensive
People often assume that term insurance is far more expensive than the other insurance policies out there. However, they couldn’t be farther from the truth. In reality, term life insurance is one of the cheapest type of life cover you can opt for.
In fact, in some cases, the premium can be as low as Rs. 500 a month.
The group life insurance policy at work is enough
Working in a place that offers a group insurance policy is a bonus. But choosing to not buy term insurance and relying only on the group policy is not wise.
While having a group insurance policy is beneficial, the coverage it offers may not be enough to support your family for a long period of time. It is always better to have a term life insurance policy of your own.
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These are some of the most common myths that are associated with term life insurance. Don’t let them deter you from the path of ensuring a safe future for your loved ones.