Availing of an insurance plan for investment or for medical coverage is a decision which most individuals take while planning for their personal finance. However, there are various myths related to insurance. Here are six misconceptions about a term plan.

1. It is believed that an insurance plan which does not provide any return is not worth it. However, an insurance policy provides for the life cover. It may not provide return of the premiums paid during the tenure, but in case of the policyholder’s demise, the policy provides death benefit to the beneficiary. It secures the future of the insured’s loved ones. This is an important feature of the term life insurance policy.

2. Another myth is that all the term insurance policies are same. However, there are different kinds of term life insurance policies for different needs of an individual. Before making the decision, it is important that the insurer explains the right terms and conditions of the policy to the insured.

3. Insurers don’t settle the claim on time is also one of the pre-conceived notions. However, in case the need for a claim arises, if all the relevant documents and bills are produced while claims are processed, it would not be difficult to get the amount. It is important to understand while taking a policy as to when the benefit could be claimed. Different policies have different conditions for claim processing.

4. Another myth is availing of a term insurance plan early or late in life is not beneficial. Taking an insurance plan at any point of time is an important decision. The benefits could be rendered at any point of time depending on the plan and the purpose for which the insurance plan has been taken.

5. Many individuals believe that life insurance cover offered by the company where they work is sufficient. However, there might be a number of ailments which are not covered under the employer’s group insurance. Thus, it is imperative to understand the group insurance policy and benefits. If it does not meet the specific requirements, it is always advisable to go for an individual term life insurance.

6. A term insurance cover cannot be increased is another misconception. The premium and the cover of a term life insurance plan can be modified depending on the changing circumstances. It is advisable to consult the insurance company from where the insurance has been procured to know about the modifications.

These are some of the myths that run in the minds of policyholders and those who are planning to avail of insurance. It is essential to take the right guidance and resolve all queries when availing of an insurance plan.