Insights into Myths about Term Insurance for Informed Investment Decisions



Several myths and misconceptions are associated with term insurance. These myths can cloud your judgment and impact your investment decisions. Understanding the truth behind these myths can help you make informed choices that align with your goals. 

Contrary to popular belief, term insurance is not complex or expensive. Instead, it offers essential coverage for a specified period. It is crucial to debunk these myths about insurance to invest confidently and secure your financial future.

Common Myths about Term Insurance

You may encounter several myths about term insurance when searching for suitable policies. Some of the myths that you need to debunk are:

Term Insurance is Expensive 

In contrast to the belief that term insurance is expensive, it is often more affordable than other insurance policies. The premiums are generally lower as the term insurance covers 10, 20, or 30 years.

The added advantage is you can customize your coverage by adding riders to the base plan. You can also calculate the premium using the term insurance calculator to choose a premium that suits your pocket. It is one of the most cost-effective options to secure your family financially.

Term Insurance Lacks Benefits and Features

The assumption is that term insurance only offers a death benefit and lacks additional features. However, many term insurance policies now offer optional riders that can enhance coverage.

Critical illness, disability, or accidental death can be added to your term insurance policy, providing comprehensive protection and financial support in unforeseen circumstances. You can also have a maturity benefit if you survive the chosen tenure with the Term Insurance with Return of Premium plan.

Term Insurance is only for the Young and Healthy

This is a common myth that needs to be unveiled. Age is no barrier to investing in term insurance. In reality, term insurance caters to people of various age groups and health conditions.

While it is true that premiums may vary based on age and health, there are term insurance options available for individuals with pre-existing medical conditions or older individuals. Exploring different insurance providers and policies is essential to find the right coverage that suits your circumstances.

A 1 Crore Term Insurance Cover is Adequate

Investing in term insurance depends on current monthly expenses and liabilities, financial goals, retirement corpus, and life events. It generally is calculated at 15 times your monthly expenses.

Use a term insurance calculator to calculate the extent of investment.

Term Insurance Is Difficult to Understand

Some people shy away from term insurance, assuming it is complicated and challenging to understand. However, term insurance is relatively straightforward. It involves paying regular premiums for a specified term.

In the event of your death within that term, the policy pays out the death benefit to your beneficiaries. For a clear understanding, you can seek advice from insurance professionals and read policy documents carefully. You can also ask questions to clarify your doubts.


Do not let myths cloud your judgment regarding investment in term insurance. By understanding the facts about term insurance, you can make informed decisions and harness the true benefits of the valuable coverage. Invest in term insurance and secure the financial future of your loved ones.  


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