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With the growing awareness about the importance of a life insurance policy, several people, especially youngsters, are now investing in a term insurance plan. A term plan is one companion that you need right from the day you draw your first salary to the time you retire, and even after that. A term life insurance policy, which is also commonly referred to as a pure protection plan, helps you secure your family's financial future and empower them to pay off the liabilities in your absence.Since it is such a vital investment to have in your portfolio, you may be wondering why your insurance advisor has not recommended it to you. Well, the insurance agents typically hold many secrets. Read on to know a few secrets that your insurance agent or advisor may never tell you about term life insurance Also Read: How Does A Term Life Insurance Work?
- Term Insurance Provides Higher Protection You work hard to ensure that you give every possible comfort you can to your loved ones. This may take an ugly turn if something happens to you, and you are not around. A term life insurance plan provides your family the much-needed financial support to help them take care of the expenses and pay off the liabilities (if any).Thus, the easy availability of a larger cover under a single insurance policy limits the agent's chances of selling an additional policy to you. Therefore, they may hide this secret from you.
- A term plan has an affordable premium A term life insurance policy provides you with higher coverage at an affordable premium. In fact, it is one of the cheapest life insurance plans available in India. If you are a 30-year-old individual and a non-smoker, you can get a term insurance cover of Rs. 1 crore for 50 years for a monthly premium of about Rs. 750 per month.Generally, the insurance advisors don't inform the buyers about the affordability factor of term insurance as the premium amount determines the commission they earn. Higher the premium, higher the commission, and vice-versa.
- Term insurance plans can be customised Term life insurance policies can be customised to suit your specific needs and offer a higher level of protection by adding add-on covers. The add-on covers allow you to cover against critical illness, disability, accidental death, surgery, etc.Adding a rider to the term life insurance plan takes away the need for buying a separate insurance policy to meet the specific protection need. Hence, insurance agents tend to hide this fact from insurance buyers.
- No commission The financial advisors and insurance agents receive a commission for every product they sell. Today, with the insurance companies offering online services, the insurance agents have lost their source of income.When you purchase a term life insurance policy online, the agents get zero commission as the transaction happens directly between you and the insurer on their website. It is because of this reason why many insurance agents may try to dissuade you from buying a policy online.
Final Word Now that you are aware of the little-known secrets about term insurance that your insurance advisor may not tell you, be a smart investor and buy a policy online to ensure your family's financial safety even in your absence.
DISCLAIMER
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.