Myths and Facts About Term Insurance Policies
Close
Close

Buy a life insurance plan in a few clicks

Now you can buy life insurance plans completely online right here.

  • Kotak e-Term Plan

    Kotak e-Term Plan is a pure term plan that provides a high level of protection to your loved ones in your absence.

  • Kotak Health Shield

    The Kotak Health Shield Plan helps secure your finances in times of sudden medical expenses related to illness such as Cardiac, Liver, Neuro and Cancer (all early and major stages of illness /conditions of Cancer); along with offering protection for Personal Accident - in case of accidental death or disability.

  • Kotak Lifetime Income Plan

    Kotak Lifetime Income Plan gives you the assurance of your income continuing throughout your life and in your absence throughout the lifetime of your spouse!

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Back

Busting Myths and Facts About Term Insurance Policies

Buy Term Plan Now
  • 26th Aug 2021
  • 219
Busting Myths and Facts About Term Insurance Policies

Term insurance is one of the simplest forms of life insurance policies, yet many people misunderstand it. It is a pure protection plan that pays the death benefit to the policyholder’s family member in the event of their untimely demise during the policy period. If you are a first-time term insurance buyer, you may naturally do your research online about the product or consult your friends and family on how to go about the purchase. But, you must know that everyone may have a different opinion.

So, to help you make the right purchase decision, we list down a few common term insurance myths and the truth behind them.

Myth 1

Term insurance is costly

Truth

Many people avoid buying term insurance mainly because they believe it is costly and the premiums are high. But, the truth is term insurance has the most affordable premium compared to other life insurance policies.

Since term insurance does not have any savings or investment component, the premiums are affordable; you can purchase a policy with a premium as low as Rs.500 per month. Many insurance companies in India offer a term plan with a sum assured of Rs.1 crore at a low premium.

So, when you buy a term policy, do your research well, compare the plans, and you will surely find a plan that suits your budget and specific needs.

Myth 2

Buying term insurance online is risky

Truth

This is one of the most common and bizarre misconceptions people have about term insurance. But, nothing can be further from reality. When you buy a term plan online, you have the liberty to compare the plans in terms of coverage offered, premium, inclusions, charges involved, etc., from different insurers simultaneously and make an informed buying decision.

Also, when you buy a term insurance policy online, you directly deal with the insurance company; there is no involvement of an agent or third party. This significantly reduces the overall cost of the agent fees, and you can get the best coverage at an affordable price.

Myth 3

Unmarried people don’t need term insurance

Truth

Many people have this false notion that they need not purchase an insurance cover until they get married or become a parent. Even if you are unmarried, you may have certain liabilities like a car loan, credit card bills, personal loan, etc. And a term policy will act as insurance against these debts.

In the event of your untimely demise, the repayment burden will fall on your family. But, if you have a term cover, your family can quickly pay off the debt with the death benefit they receive. Also, lastly, when you are young and single, you may not have too many financial responsibilities compared to a married person. In this case, you can afford to purchase insurance with a lower sum assured with an affordable premium. You can increase a coverage amount later as your responsibilities grow.

Myth 4

People over 40 cannot buy term insurance

Truth

While it is advisable to purchase a term plan at a young age, it is never too late to buy one. Many insurance companies in India allow you to buy a term plan till the age of 55 and provide coverage till you are 75 years old. So, if you are over 40, you can easily buy a term plan of your choice and get the much-needed financial protection for your family.

Final Word

Now that you are aware of the common myths don’t pay heed to such wrong information. Do your research well and buy a policy online that best suits your needs.

- A Consumer Education Initiative series by Kotak Life

Tags

Also read

  • How to Change the Nominee in Term Insurance?
    • 11th Oct 2021
    • 19

    How to Change the Nominee in Term Insurance?

    If you want to change the nominee for your term insurance plan you can easily change that here is a guide how you can do that. Visit now!

    Read more
  • What Types of Deaths Are Covered in a Term Insurance Plan?
    • 11th Oct 2021
    • 27

    What Types of Deaths Are Covered in a Term Insurance Plan?

    If insurer doesn't know what types of death are not covered in Term Insurance Plan, the insurer will not honour the claim. So, read on to be aware.

    Read more

Related Plans

  • Kotak e-Term Plan - Online Term Insurance

    Kotak e-Term Plan - Online Term Insurance

    Kotak e-Term Plan is a pure term insurance plan that provides a holistic life protection at affordable prices. Find out the eligibility criteria, key ...

    Know more
  • Kotak Classic Endowment Plan

    Kotak Classic Endowment Plan

    Kotak Classic Endowment Plan is a long term protection cum savings plan that offers protection benefit while earning bonuses during the policy term.

    Know more
  • Kotak Gratuity Plus Group Plan

    Kotak Gratuity Plus Group Plan

    Kotak Gratuity Plus Group Plan is a unit-linked group gratuity plan that helps you fund for the gratuity obligation systematically & effectively and r...

    Know more
  • Kotak Gratuity Group Plan

    Kotak Gratuity Group Plan

    Kotak Gratuity Group Plan is a Unit-linked group gratuity plan that helps you fund for the gratuity obligation systematically & effectively and releas...

    Know more
  • Kotak Complete Cover Group Plan

    Kotak Complete Cover Group Plan

    Kotak Complete Cover Group Plan is a non-participating single-premium plan that provides life cover to a group of borrowers of the credit /lending ins...

    Know more