6 Term Plan Myths that you must Clear Before Buying - PNB MetLife

Debunking the Common Term Plan Myths

PNB MetLife 08-08-2018 11:39:58 AM
Debunking the Common Term Plan Myths

A term insurance offers a financial blanket to your loved ones’ in case of an unforeseen event. Basically, a term plan will make sure your loved ones can continue living the same lifestyle in future.

So, if you have heard any myths on why not to buy a term plan, we tell you the reality and debunk the most common myths:

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  • I am single and no plans to mingle, so I don’t need a term plan - You might be single now but nobody knows the future. Also, some term plans may also assist in financial emergencies like unemployment or critical illness. A term plan can always be customised to provide additional benefits during your lifetime. So, play safe and buy a term policy based on your customized requirements. 
  • My employer has covered me in group insurance plan - Your contract with your employer lasts if your employment tenure in his/her company. You would ultimately look for a better opportunity and switch jobs or even start something on your own. So, you should rely on your individual insurance plan which will be suited for your needs and not just your employer’s plan.
  • I have just turned 25, I don’t need insurance - Young generation can garner maximum benefit from a term insurance plan. They will be charged lower premium and they can lock the small premium amount at an early age. Also, it is never too early to buy a term policy. For unforeseen situations, you would not want your financial liabilities to fall on your parents or family. Especially for young people, it is imperative that they buy the best plan which will become comparatively costly as they grow up.
  • Term insurance companies will find loopholes to reject claims - IRDAI is the government body regulating all Indian insurance companies’ activities. Their rules and regulations provide a common framework for all companies to process claims. IRDAI’s strict regulations ensure impartiality and prevent frauds. 
  • I need coverage, only twice my income - You should buy a term insurance plan based on your future needs and growth potential of your job. The coverage should not be decided based on your current income only. If the benefits are going to be reaped in the future, then the plan should reflect future requirements. Also, inflation and economy growth makes it necessary that your future financial planning does not necessitate adjustments from your beloved family members. So, buy a future-proof term policy that will cover your entire requirement.
  • It’s very complicated to buy term plan - Term Plans are the simplest form of life insurance. They do not hold cash value. So, it reduces the need to keep a track of your premium cover to find out how much goes into risk coverage and how much goes into policy loan repayment. And, nowadays you don’t even have to run behind insurance agents or fill lengthy forms to buy a term policy. Buying term plan is as simple as going online and buying a pair of socks on Amazon. Simply fill up all your details, make the first payment and enjoy your term insurance benefits.


Most of us underestimate the importance of getting term insurance plans. A term plan not only offers life cover for you, but works as a financial blanket for your loved ones. And, that’s why, a term plan is a must-have in your financial portfolio. So, with all your myths debunked, go and buy your term plan today!

Disclaimer: 
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

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