People want to protect their families. But insurance confuses most of us. We hear different things from different people. Some of it is true. Most of it is not.
Your neighbour says one thing. Someone at work says to another. The internet has a thousand different opinions. No wonder making a decision feels impossible.
The problem gets worse with all the false information out there. These myths stop families from getting the protection they actually need.
Let’s clear up the biggest myths about term plan with return of premium and term life insurance plans.
Myth 1: “Term Insurance Is Throwing Money Away”
This one comes up all the time. People say if nothing bad happens, you lose all that money.
But think about your car insurance. Or health insurance. You pay for it every year. If you don’t make a claim, does that mean it was useless? Of course not.
Insurance protects you when things go wrong. Term life insurance plans give your family money if you’re not around anymore. That security matters more than anything else.
Myth 2: “Only Dad Needs Insurance”
Wrong. Dead wrong.
Most families only insure the person who brings home the salary. But what about the parent who stays home?
They do everything. Cooking. Cleaning. Taking kids to school. Helping with studies. If something happens to them, who does all this work?
You’d need to hire people. A cook costs money. So does a babysitter. And a driver. Add it all up. It’s expensive.
Everyone who keeps the family running needs coverage.
Myth 3: “I’m Too Young for This”
Young people think insurance is for their parents. Not true.
Starting early saves you money. Premiums are cheaper when you’re young and healthy. You lock in low rates for decades.
Life doesn’t wait for anyone. Bad things can happen at any age. Getting covered now protects whatever family you build later.
Myth 4: “My Office Insurance Is Enough”
Your company probably gives you some life cover. That’s nice. But look at the amount. It’s usually just one or two years of your salary.
Can your family manage on that for 10 or 20 years? Pay the home loan? Send kids to college? Probably not.
Plus, change your job, that insurance is gone. Your own term life insurance plans stick with you forever. No matter where you work.
Myth 5: “Return of Premium Plans Are Always Smarter”
A term plan with return of premium gives your money back. Sounds perfect, right?
Well, maybe not. These plans cost way more than regular ones. Sometimes double or triple.
Here’s what happens. You pay extra for 20 years. Then you get it back. But what if you’d taken a cheaper plan instead? You could’ve invested that extra money. In 20 years, it might have grown much bigger.
So it depends. Do the math for your situation before deciding.
Myth 6: “They’ll Reject Me Because of Health Issues”
People avoid insurance because they’re scared of medical tests. They think any small problem means rejection.
That’s not how it works. Insurance companies look at everything together. Many health conditions are fine. You might pay a bit more, but you still get covered.
Just be honest. Hiding health problems causes real trouble later when your family needs the claim money.
Myth 7: “Claims Never Get Approved”
Everyone has heard horror stories about claim rejections. It makes people think insurance is a scam.
Most claims get paid without problems. You just need to do things right:
- Pay your premiums on time
- Give correct information when buying
- Keep all your documents safe
- Submit everything they ask for
Follow these steps and claims usually go through smoothly.
Myth 8: “More Coverage Is Always Better”
Some people buy the biggest coverage they can find. They think more money means better protection.
But can you actually afford it for 30 years? If you struggle to pay and stop the policy, you end up with nothing. Zero protection.
Better to buy what you can comfortably pay for. Your family needs coverage they can count on. Not a policy that stops after 5 years because you couldn’t keep up.
What Really Matters
All these myths create noise. They distract you from the real questions. Let’s cut through everything and focus on what actually counts.
Don’t let false information stop you from protecting your family. Here’s what you need to think about:
- How much money does your family spend every month right now?
- What big expenses are coming up in the next 10 or 20 years?
- How much can you comfortably pay each month without struggling?
- Do you need coverage until your kids finish college?
- Will your spouse need money to pay off the home loan?
- Are there any other debts that need clearing?
Answer these honestly. Write the numbers down on paper. These questions matter way more than worrying about which type of plan sounds better.
Your situation is unique. What works for your friend might not work for you. Focus on your family’s real needs, not what everyone else is doing.
How to Actually Get Started
You don’t have to figure everything out in one day. Sit down and write out what your family spends each month. Rent, groceries, school fees, everything.
Then add up what they’d need for bigger things later. College costs money. So does a wedding someday.
Final Words
You’ve read the truth now. The lies don’t have power anymore.
Getting a term plan with return of premium or regular term life insurance plans isn’t about being perfect. It’s about doing something instead of nothing.
Your kids need to finish school even without you. Your spouse shouldn’t lose the house. That’s why this matters.
Stop waiting for the right moment. Call someone this week. Ask questions. Sign the papers. Do it before life gets busy again and you forget.
