One of the cheapest ways of getting your life insured is to buy a pure term insurance plan. Unfortunately, people always tend to give a second thought to the idea of subscribing to a term insurance plan due to myths surrounding it. Here, we have debunked some of the most misleading myths about this type of insurance to help you accept or decline the chance to get term insurance cover knowing exactly what it entails.
1. There is no point in taking insurance cover that has no returns
Term life insurance plans do not promise returns, but their list of benefits is still long. A term life insurance from Intelliquote secures your future and that of your family for a ridiculously low amount.
If you opt for the rider benefit in the event of an accident or illness, then you can also avail the ROT in the policy.
2. Term policy is not for single people
Some term plans may assist in critical illnesses, unemployment, and other financial emergencies that you face whether or not you have a partner. Term plans are pretty flexible and can be customized to provide desirable benefits throughout the term. All you need to do is know what you want from the beginning and buy your policy with your most relevant needs in mind.
3. There is no need for term policy if you are covered in a group insurance plan
Most people do not understand how the group insurance plan works. One big reality they overlook is that they will be insured for only as long as they will be working with the employer. In the future, you could decide to seek greener pastures elsewhere or even fall victim of a large-scale retrenchment in the company. Term life insurance gives you the opportunity to rely on an individual plan that will is tailored to meet your specific needs and not the average of a group.
4. You don’t need insurance because you are only 25
The notion that life insurance is just for the older generations may be preventing you from buying a term policy. That’s misguided because accidents can happen anywhere as long as you are working.
The fact that insurance companies are desperate to lure young people to get life insurance is an opportunity for you to get a termpolicy on the cheap.
5. It is difficult to buy a term plan
Term plans make for the simplest type of insurance as they do not bear cash value. This means you don’t necessarily have to keep tabs on how much of your payment is used for policy loan repayment and how much for risk coverage. Additionally, you do not need those lengthy forms or insurance agents to buy a term plan. For most insurance companies, the process is as simple as going online, filling up your details and making your first payment
6. Insurance companies will always reject term insurance claims
One thing that holds people back from buying any form of insurance is the prospect of having potential claims arbitrarily rejected. Well, this only happens because most people don’t know the terms of their policy and what exactly they are insured against.
Before subscribing to an insurance plan, first go through the details and the company terms to know what you are signing up for. This way, you can know when you are in a position to file a valid claim.
In addition to that, national and state insurance regulatory bodies are there to ensure there is a common framework all companies need to follow when processing claims. The regulations protect you from impartiality and fraud.