Common Misbeliefs Why People Don’t Need Term Insurance

Vikas is a young professional whose day starts at 7 in the morning and extends late into the night, leaving him with no time to exercise or even plan a healthy diet. He usually works in high-pressured, stressful situations to meet his deadlines. When he has time off, he likes to catch up with his favourite shows in bed or go out with his friends for a drive. He never listened to his father who always pushes him to buy a life cover for him. Instead of knowing the term insurance advantages and disadvantages, majority of people like Vikas refuse to pay for this policy. Below is a list of the common excuses why people think they don’t need to purchase term insurance India and why it is completely wrong:

• ‘Single’ Status

Buying online term insurance India is important even if person is single. It is essential for those who have financial obligations, including having outstanding balances on credit cards or running some loans. Your family will be left to make those repayments when you are no more around. In fact, this improves the lifestyle for policyholder’s parents as well. In case your parents are not dependent on your salary currently, but they may rely on your income post their retirement.

• Young and Healthy

Actually, it is the right time to buy term insurance India online because you can save some handsome amount of money on premium and get guaranteed cover. As your age grows, you may suffer with health issues and will have to pay a higher premium or may not get desired coverage.

• I don’t have Children

Term insurance policy gives safe financial future for your spouse when you are not around to take care of their needs. Your spouse may have to manage monthly expenses and your loan EMIs. It will not be easy if your spouse is financially dependent.

• Have Employer’s Term insurance Policy

There is a huge difference between having enough term insurance for whole life and just term insurance. Only the right amount of coverage can successfully replace policyholder’s future earning till his or her retirement in insured’s absence. Usually, insurers give coverage which is twice the employee’s annual salary. But, such benefits may be sufficient to support the family maximum for two years.

• Spouse is Covered and Primary Earner

Still, you do take on responsibilities and hence, your income impacts the lifestyle of the family. As a homemaker, you are running the household and life will become challenging in your absence.

• No Returns

People have a tendency to compare term insurance for whole life with other financial products especially investment plans. But, policyholders need to understand that it is not about returns, it’s about peace of mind. This policy covers the risk of dying too early.

A term plan is your doing that extra bit to ensure that your family and you must not let yourself get mislead by myths. Keep the above points in mind and securing your family’s future will be an easy task.

Siddhant Dubey - Writer & Photographer

Siddhant works as a freelance content writer who is interested in a wide range of spheres from photography and personal finance to cooking. He is also an aspiring photographer striving to showcase life around him through his vision.