Let’s be real, Life insurance is one of those things we know we should have, but most people don’t talk about it until it’s too late. It’s like putting off cleaning the house when we know it’s important, but it feels like a chore we’d rather avoid. And even though term insurance is affordable and helps secure your family’s future, many people still hesitate to buy it. So, why is that?
Death: The Ultimate Party Pooper
In India, talking about death is like inviting bad luck. It’s awkward, uncomfortable, and mostly avoided at all costs. Many people put off buying term insurance because they simply don’t want to face the reality of mortality. But let’s face it, ignoring reality doesn’t make it go away.
Tip: Don’t let the discomfort hold you back. Having a conversation now is better than leaving your family in the dark. Just think about it, would you rather not talk about it and leave things to chance, or plan for the worst-case scenario so your loved ones are secure?
Why doesn’t Term Insurance Give Me Any Returns?
The biggest misconception? “I’m not getting any return on investment, so why bother?” This is the number one reason why many people dismiss term insurance. Unlike LIC’s endowment policies, which give you back some money after the policy term ends, term insurance is designed only for protection, not returns.
Think of it like a seatbelt. You don’t wear it hoping to get something back if nothing goes wrong, you wear it because it protects you when the worst happens. So, while term insurance doesn’t give you anything back if you outlive it, it ensures your family gets the payout they need if you don’t.
Real Example: A friend of mine (Rajesh), opted for a traditional LIC policy because he thought, “At least I’ll get something back.” But that policy cost him 3 times more than a basic term plan. If he had bought the term plan, his family would have received ₹50 lakh in case of any unfortunate event, but now he has nothing.
Tip: Don’t treat term plans like investment plans. Think of them as emergency funds for your loved ones.
The LIC Comfort Zone
We Indians love what we know. For decades, LIC’s traditional plans, where you get returns at the end of the term, have been the go-to option for life insurance. We’re so used to the “investment + insurance” combo that switching to pure term insurance feels like jumping off a ledge.
But traditional policies are expensive and may not give you the best value for money. Term plans are cost-effective and give you more coverage for less money, but we’re stuck in the comfort zone of those older, familiar policies.
Tip: Don’t let sentimentality get in the way of your future. Term plans might feel new and unfamiliar, but they give you the best protection at the most affordable price.
What If My Insurance Claim Gets Rejected?
This is a big one. The idea that your insurer will reject the claim when your family needs it most is enough to send anyone into panic mode. We’ve all heard those horror stories: someone pays premiums for years, only to have the insurer deny the claim due to some technicality.
The reality is, legitimate insurers have high claim settlement ratios. It’s just that we’re so bombarded with tales of rejection that we start doubting the whole system.
Tip: Choose a reliable insurer with a good claim settlement ratio and always be upfront in your applications. Proper documentation is the key to ensuring your claim is processed smoothly.
Why Is the Process of Buying Term Insurance So Complicated?
Let’s face it, buying term insurance feels like applying for a visa: medicals, long forms, and more jargon than you can handle. With all that technical language and paperwork, who wouldn’t feel exhausted? It’s easier to ignore the whole thing and just say, “Later.”
Real Example: My cousin gave up halfway through the paperwork for his term plan. He was overwhelmed by the medical tests, forms, and the 20-page proposal, which was full of terms like “riders” and “premium waiver.” Don’t let the paperwork scare you. With online plans, the process is much simpler today. Some insurers even offer easy e-sign options to skip all the hassle.
Tip: Don’t skip out because of paperwork. Many insurers now offer online platforms where you can sign up in minutes and avoid the long waiting time.
Is Employer Insurance Enough to Protect My Family?
“My office gives me insurance, so I’m covered.” Many people rely on their employer’s life insurance to protect their families. But what happens if you leave that job? Poof, the cover is gone. Similarly, many feel their parents’ LIC policy will cover them, but guess what? The insurance is for the parents, not you.
Tip: While it’s great to have an employer or parent cover, don’t rely solely on it. Get your own term plan, so your protection is always with you, no matter what life throws at you.
Final Thoughts
At the end of the day, term insurance is all about peace of mind. Sure, it’s uncomfortable to think about death, and yeah, it’s not the same as getting a lump sum at the end. But it’s the most affordable way to protect your family’s future, and it’s far easier to get than you might think.Start today. It doesn’t need to be complicated. Just think of your loved ones and ask: If something happened to me, would they be okay? And remember, Term insurance isn’t a luxury, it’s a necessity.
