#beinsured

Term insurance is a simple and the most affordable form of life insurance. However, there are many myths surrounding term insurance that can make it difficult for people to make informed decisions about their insurance needs.

Myth #1: Term insurance is expensive Term insurance is actually one of the most affordable types of life insurance available. Because it provides coverage for a specific term and does not have any living benefits, the premiums are much lower than other types of life insurance.

Myth #2: Term insurance only provides coverage if you die While the primary purpose of term insurance is to provide coverage in the event of death, you can attach other benefits such as critical illness coverage, disability coverage, and accidental death coverage by paying an additional premium. These additional benefits can provide valuable protection to you and your family members.

Myth #3: Term insurance is only for young people Term insurance is suitable for people of all ages, not just young adults. You can adjust the coverage period of your policy to meet your specific needs. However, it is always better to buy term insurance while you are still young.

Myth #4: Term insurance is a waste of money if you don't die during the term of your policy While it's true that you or your family do not receive any benefits if you outlive the term of your policy, the premiums you pay during that time still provide a valuable form of financial protection. Term insurance provides peace of mind as it protects against unexpected financial losses during the coverage period.

Myth #5: You don't need term insurance if you have savings While savings are important, you may not have enough to protect your loved ones in the event of your death. Term insurance can provide a financial safety net for your family, ensuring that they are able to cover expenses and maintain their quality of life in the event of your unexpected passing.

Term insurance is an affordable form of life insurance that provides valuable financial protection to you and your family. Always make an informed decision about your insurance needs and protect your loved ones for the future.

Should you buy travel insurance? Is it worth it?

Your travel insurance policy protects the money which you have laid out for your travel. In case any unexpected event happens, you don’t stand to lose that money.

Many countries have made it mandatory for visitors to buy travel insurance before they can set foot on their land.

But whether it is required by law or not, buying travel before you start your journey is always recommended. So what does your travel insurance policy cover?

Emergency Medical Benefits - If you fall sick during your trip and require medical help, travel insurance plans usually cover the cost.

Accidental Death and Disablement - If any accident happens while traveling in a common carrier such as a flight, train, or bus which causes death or permanent disablement, your travel insurance plan covers that.

Loss of Baggage or Personal Documents - If you lose your baggage or personal documents during your trip, your travel insurance also pays for the actual cost of loss.

Loss or Delay of Checked In Baggage - If your checked in baggage is delayed by more than 12 hours or is lost in transit, your travel insurance covers the cost of actual loss or damage.

Flight Delay - Yes, your travel insurance also reimburses the expenses you incur for meals, refreshments, etc. in case your flight is delayed by more than 6 hours or so.

Financial Emergency Assistance - If you lose your travel funds due to theft or robbery during the trip, your travel insurance covers that too.

Trip Cancellation - Some travel insurance plans also cover trip cancellation. If you have to cancel or cut short your trip due to any unforeseen circumstances such as your illness or the illness of any family member, your travel insurance plan pays for the unused part of the trip such as prepaid expenses which are non-refundable.

Your employer provides you term life insurance.

Should you buy a term life policy of your own?

Yes, most likely.

It is great that you are covered under group life insurance which is sponsored by your employer. But chances are that this might not be enough for you.

Why?

1. You have the life cover only till the time you are associated with this employer. If you change your company or lose your job, you will no longer enjoy the benefits of the same group insurance policy. And in most cases, this type of cover is NOT portable.

2. You switch your job and your new employer has no group insurance policy. At that time, you will be NOT having any insurance and getting an individual term insurance policy will be a challenge at an older age.

3. You will most likely be having basic coverage provided by your employer. This could be around 2 to 4 times of your annual salary.

“Think of group insurance as a nice-to-have thing, but you need to have individual term life insurance too.”

The earlier you buy your life insurance, the lower the premium you will have to pay. And that is what is desired.

You are in your early 20s. You have just started earning.

You now want to buy a term insurance plan for yourself. Can you get it?

Well, we are not sure.

What do insurers do when you apply for a term insurance cover?

Insurers try to assess whether you are a good risk for them or not. You see, term insurance policy comes with a huge life cover and if you pass on any time during the policy term, the insurance company pays your family that amount.

But what do you pay to the insurance company to get that huge life cover? A very small amount every year which you call premium. So insurance companies take a huge risk when they extend you a life cover in the form of a term policy.

They want to make sure that you are a good risk for them.

They do that by seeing your medical and financial details. You provide these details to your insurer when you fill the form. Based on this information they decide if you are eligible to get a term insurance plan.

Covid has changed a lot of things for the life insurance industry in India. Buying a term insurance plan is not easy now. Insurers have become very strict with their underwriting process.

So what can you do to get yourself a term life cover?

👉 If you already have a term insurance policy, please keep it intact by paying regular premiums.

👉 If you apply for a new policy, please provide accurate information about yourself in the proposal form. If the insurer asks for more information, please provide all relevant details.

👉 If the insurer is ready to give you cover with some extra premium, please accept it. You do not have any other choice.

👉 If life cover is declined, you can look at buying some savings plan which can provide you life cover to some extent.