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With important financial decisions, it is always better to be careful. It is about protecting your family during difficult times when you will not be around. Therefore, it is understandable that you may have questions before buying insurance.
If you want to buy term insurance from Max Life Insurance, you might want to ask - Is Max Life Insurance safe or not? Or Is Max Life Insurance reliable to safeguard your family?
But first, let’s discuss some common myths before we give way to such questions.
Common Myths About Term Insurance
There are certain myths about term insurance that you may have come across while looking for suitable policies. While you may think these are true term insurance hidden facts, they can be extremely misleading. Therefore, it is crucial to debunk the myths about term insurance to know how good is Max Life insurance for your family’s well-being,
While making a financial plan for your family gives you the confidence of long-term protection, you need to be aware of the features to make the right decision. The myths about term insurance can lead to questions like – Is Max Life Insurance safe or Is Max Life Insurance reliable?
Nonetheless, it is important to address such questions for your peace of mind. You can determine whether Max Life Insurance is safe or not for policyholders by examining the myths about term insurance hidden facts.
1. It Is Too Early to Buy Term Insurance
Securing the future of your loved ones is never too early if you feel the need for it. If you have debts or dependents, it is advisable to begin financial planning at a younger age to get better results.
If you are inexperienced with investments, you may wonder - Is Max Life Insurance safe to buy a policy once you have started earning? The answer is that when you are young and healthy, a term insurance policy costs much cheaper and offers protection for decades. The earlier you secure life coverage in life, the better its impact on your finances.
2. Term Insurance is a Waste of Money
A pure term insurance plan is designed to offer security to the policyholder’s family under unfortunate circumstances. Since there is no benefit provided if the insured person survives the policy tenure, it might lead you to believe term insurance is a waste of money.
The truth is that term insurance is a long-term protection instrument that can give greater value at cheaper costs. You can get a large sum assured amount at nominal rates for an extended period in life. Some term insurance plans also provide protection for the entire lifetime.
3. Coverage Amount Can’t Be Increased After Purchase
As you go through different life stages, the financial objectives may transform depending on several factors. For instance, if you purchase life insurance when you are married without children, it has a sum assured that covers your partner’s needs. Once you have children, there are broader responsibilities to manage.
Insurers offer increasing term insurance to cater to such changing needs. Under these plans, you can adjust the life coverage at regular intervals if you feel the need for it. In case you do not have increasing term insurance, you can cover the changing conditions with an additional policy or a top-up option, if available.
4. Term Insurance Is Not Flexible
One of the myths about term insurance is that it is not flexible to cover different financial requirements. The truth is you can customize the term insurance to your particular needs by adding riders to the base plan. Several riders are available with a term insurance plan that can enhance the coverage, as per your choice.
Some of the standard riders offered with term insurance are critical illness insurance, waiver of premium rider, accidental death & dismemberment rider, and more. It will help if you calculate the sum assured for your term insurance to determine the need for a suitable rider to your policy.
Also Read: What are Riders in Insurance?
5. It Only Offers Death Benefit
As mentioned previously, simple term insurance offers death benefits to the insured’s family in case of a mishap. You can select the death benefit amount according to your capability and preference. However, many people are misinformed about other benefits of term insurance.
There are different types of term insurance, such as Term Insurance with Return of Premium (TROP), that provide a maturity benefit if the policyholder survives the chosen tenure. Your investments as premium will come back to you with this term insurance option.
5. It Only Offers Death Benefit
As mentioned previously, simple term insurance offers death benefits to the insured’s family in case of a mishap. You can select the death benefit amount according to your capability and preference. However, many people are misinformed about other benefits of term insurance.
There are different types of term insurance, such as Term Insurance with Return of Premium (TROP), that provide a maturity benefit if the policyholder survives the chosen tenure. Your investments as premium will come back to you with this term insurance option.
6. Term Insurance Is Expensive
Contrary to the myths about term insurance, it is actually one of the most affordable life insurance plans available. You can get the desired coverage at nominal rates of premium. The affordability of term insurance makes it one of the popular choices among policyholders.
Term insurance has quickly become an indispensable part of a sound financial plan. More people find it an accessible option to secure their lives without burdening their income. Due to the global pandemic's impact, more people are convinced of term insurance value for protection.
7. Claim for Term Insurance Is Often Rejected
The Insurance Regulatory and Development Authority of India has established regulations[1] in the policyholders’ interest to ensure quick and rightful claim settlement. It states that all claims should be settled by giving all relevant reasons within 30 days from the date of receipt of necessary documents by the insurer.
You can check the claim settlement ratio of the insurer to put your mind at ease regarding any doubts. Often, the claim rejection can be due to false information provided by the insured or the manner of death uncovered by the policy. Make sure to provide accurate information to the insurer when it is required to reduce the chances of claim rejection.
8. There is No Need for Term Insurance If I Have Employee Coverage
Nowadays, many organizations, big or small, offer life insurance coverage to their employees. It is usually under a group life insurance plan that covers multiple employees. While it is helpful as it adds a layer of financial security, the coverage amount may not be sufficient.
Since it covers several people within one policy, you may require additional support from a standalone policy to meet your needs effectively. Remember to analyze your personal financial situation to get suitable coverage.
Why Should You Do Thorough Research While Buying Term Insurance?
Comparing different term insurance plans can be helpful when buying a plan for your family. It is important to look for the right combination of benefits that can satisfy a range of life goals. Overall, these are some of the questions that may be running through your head if you are evaluating whether Max Life insurance is safe or not.
- Is Max Life Insurance Safe?
- Is Max Life Insurance Reliable?
- Is Max Life Insurance good option?
It is entirely safe and reliable to buy term insurance plans from Max Life Insurance, and you get the option to choose from a wide range of options depending on your requirements and preference.
Comparing different term insurance plans can be helpful when buying a plan for your family. It is important to look for the right combination of benefits that can satisfy a range of life goals. Overall, these are some of the questions that may be running through your head if you are evaluating whether Max Life insurance is safe or not.
- Is Max Life Insurance Safe?
- Is Max Life Insurance Reliable?
- Is Max Life Insurance good option?
It is entirely safe and reliable to buy term insurance plans from Max Life Insurance, and you get the option to choose from a wide range of options depending on your requirements and preference.
Moreover, Max Life Insurance offers high-quality customer support, so you can get all your queries resolved. However, you can research our term insurance plans on our website as it will give you a broader and clearer perspective on what to look for in a term insurance plan.
You may even find a desired feature that you had not considered previously. Based on this research, you will get the answers you seek.
Frequently Asked Questions (FAQs)
Q. Do I Need a Larger Sum Assured if I Occasionally Smoke?
A. Even if you do not smoke regularly or have smoked in the last 12 months of buying term insurance, you must declare it to the insurer. In case you do not provide the information, and it is later revealed, you may lose the policy benefits altogether.
Q. Is A Medical Examination Required for Buying Term Insurance?
A. Insurance providers may ask for a medical examination of the person being insured to assess the risk profile. The results are used to determine the suitable coverage amount for the insured.
Q. Can I Add More Than One Rider to My Plan?
A. Yes, you can add as many riders to your term insurance policy as you wish, provided they are offered with the base policy by the insurer.
Q. What Happens If the Nominee Dies During Policy Term?
A. In case of the nominee’s demise within the policy term, the policyholder can change the nominee for their term insurance. It is essential to update the new nominee details as soon as possible to avoid any complications.
Q. Can I Buy Term Insurance for My Spouse or Children?
A. You can be the policyholder of term insurance, where the life insured is another person such as spouse, children, or parents. The policyholder needs to pay the premiums for such a policy.
Sources:
[1] https://www.irdai.gov.in/ADMINCMS/cms/whatsNew_Layout.aspx?page=PageNo3776&flag=1
https://www.policyholder.gov.in/why_buy_life_insurance.aspx
https://www.irdai.gov.in/ADMINCMS/cms/whatsNew_Layout.aspx?page=PageNo3776&flag=1
https://www.irdai.gov.in/ADMINCMS/cms/LayoutPages_Print.aspx?page=PageNo130
https://www.irdai.gov.in/ADMINCMS/cms/frmGeneral_Layout.aspx?page=PageNo50&flag=1
ARN No: Nov21/Bg/12B
