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Post By Shweta
Myths & Facts about Life Insurance
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Life Insurance Myths and Facts
When you talk about Life Insurance it normally freaks out every individual. The main reason behind is the confusion everyone has about the benefits received through a Life Insurance Cover.
Nearly 50% of Indians are confused whether to buy a Life Insurance Cover or not. Here are the most common Myths we would like to clear about why to buy a Life Insurance Cover:
Myth 1: I don’t need a separate life insurance cover, it has been taken care by my company.
Fact: Maybe, you need to rethink. Life insurance through your employer is a great option, but what will happen when you leave or lose your job? Your company policy generally does not travel with you. Once you have left your company the policy is cancelled and the benefit won’t be valid. It is advisable to buy a personal Life Insurance cover rather than being dependent on your company policy.
Myth 2: Only the Breadwinner of the family requires a Life Insurance Policy.
Fact: We would disagree with you if you think that only the breadwinner of the family requires a Life Insurance Cover. Every member including the dependent needs an insurance. The role may vary but you cannot eliminate the risk. For Eg: For securing the financial
Myth 3: Life Insurance Policies are very expensive
Fact: The biggest misconception about life insurance policies is the cost. Many of us over estimate the cost of buying a cover. However, the cost is not the concern while buying a Life Insurance Policy. There are several plans available which can suit the insured’s needs by just paying a small amount of premium.
Eg: A 50 Lacs Term Cover for a 30yrs old individual will cost around Rs. 3,500. Which will cost you around Rs. 290 monthly. This is quite less as compared to a Rs. 120 CCD Coffee per week.
It is important to understand the plane and your needs before buying the right plan.
Myth 4: I am young to worry about buying a Life Insurance Cover.
Fact: The truth can sometimes be too harsh than our expectations. When you are young there are a number of debts and expenses (Like – Credit Card, Personal Loan, etc.) which you may consider to take it right now. But can you stop something unforeseen from happening? A Life Insurance will support your family from any financial burden when you are not around.
Myth 5: Insurance is for Saving Tax
Fact: We buy Life Insurance only considering it as a Tax Saving Instrument. Though it offers tax benefit under Section 80C, the sole purpose of buying a cover is to provide financial protection to your loved ones in the event of an unfortunate death. Think of insurance as a mode to build assured corpus for your future needs and not for only saving tax.
Myth 6: I am Healthy and will be fine without buying a Life Cover.
Fact: Even if you are young & healthy an illness or an accident can strike anytime. If the primary wage earner has passed away due to such event it will be difficult for their family members to take care of their everyday living expenses. So avoid such situations buying a Life Cover might save your family for these troubles.
Bottom Line:
Hope we have clarified your doubts and given a clear path to the benefits received by having an adequate Life Insurance cover. For more information, we would advise you to speak with our Expert Team or visit our OneInsure's website.
