Term Insurance 1058 views April 1, 2020

Term Insurance plan is a life insurance product offered by insurance companies which provides comprehensive coverage against premiums paid for the plan to the nominee or beneficiary of the term insurance policy. Term insurance plans are long term insurance policy in which you can avail coverage of 30 years to 35 years. There are some term insurance plans which offers lifelong coverage in which you get 99 years to 100 years of coverage. Term insurance plan pays a death benefit upon death pf the insured individual during the term of the insurance plan. Term Insurance is one of the cheapest and purest life insurance.

Term Insurance

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Being one of the most popular and beneficial insurance product, there are certain myths among individuals related to the term insurance plan. Term Insurance plans are misunderstood insurance product in the market and many individuals do not buy it because of myths associated with it. Let’s discuss five myths that are related to the term insurance plan.

5 Myths about Long-Term Care Insurance

Term plans have no returns of the premiums paid for the term insurance plan

Term insurance plans are pure protection plans which do not offer maturity or survival benefits to the insured. However, there are the return of premium plans if you are looking for returns from a term plan. Under the return of premium plans, the premiums paid by you for the term insurance plan will be returned to you when the term insurance plan will mature. Hence, if you looking for term insurance plans with returns then you can buy such return of premium term insurance plan. Also, term insurance plans provide a death benefit to the nominee or beneficiary of the insurance plan which is a form of the return of the premiums paid for the insurance plan. However, the death benefit is subject to the death of the insured during the term of the insurance plan. 

Term Insurance plans are expensive

Term Insurance is the cheapest insurance product to buy a substantial death benefit. Term insurance plans are not expensive and the premiums on these insurance plans are lowest and affordable. The term insurance plan covers the risk of death of the insured in return of premium. The premiums that are required to be paid by you for term insurance plan depends on various factors especially depending on the coverage of the plan or the sum assured under the plan and the age of the insured.

I do not require a term insurance plan because I am Single

Even if you are single, you should buy a term insurance plan for any liabilities or debts that you may have such as home loan, personal loans, car loans, etc. After all, you cannot rely on your family members to pay your debts on your sudden or unfortunate death. Also, in case you are sole bread earner in your family then your dependents will require a source of sustenance in your absence. Term insurance plans are for the long term and provide coverage for 30 years to 35 years, during which you will have spouse and children who will be financially dependent on you and require financial security in your absence. Buying a term insurance plan even when you are single works as planning for future events as term insurance plans provide longer coverage covering your financially dependent family.

Insurers reject the term insurance claims for some or other reason

The contract of Insurance is based on utmost good faith. You should pay the premiums timely and fill the application form without making any errors to minimise the chances of rejection of your term insurance claim. Insurance companies reject claims for various reasons. You should check the reason behind your claim rejection. Even on the rejection of the claim by the insurer, you are not required to worry. You can file an appeal with IDRAI which is a government-regulated body ruling insurance market in India. IRDAI closely watch the claims registered to ensure a smooth and hassle-free claim process. Many of the nominee and beneficiaries have received their claim from the insurance companies during unfortunate events. 

Riders are not needed in term insurance plans

Many people believe they do not require riders in term insurance plans. This is not true. Riders are important as they provide additional coverage benefit which allows the more comprehensive scope of coverage and the premiums that are associated with the riders are also very low. So you should opt to buy or invest in accidental benefit rider or critical illness rider which will offer you enhance coverage at very low rates of premium. The addition of rider with the term insurance plan provides you with the benefit of term plan and also provides benefit health insurance plan through critical illness rider. 


Term Insurance is one of the most beneficial life insurance products. Term plans are protection oriented plans which are involved with risk coverage of the insured individual. You should remember that term insurance plans are not for you but for your family and their financial security in your absence. As a policyholder, you should always have investment objective in your mind and then it would be easier for you to buy the right term insurance plan. It is advisable to overlook the myths and secure the financial future of your family with a term insurance plan. 

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