When it comes to Life Insurance, people are already under the deluge of misinformation. Generally, people in India, often the youth, have a tendency of procrastinating the decision of purchasing insurance. This is because young people often believe that no harm can be caused to them no matter what conditions may arise.
Similarly, majority of people have firm faith in divine establishments such that risks associated with life are often left in the hands of God. Thus, a major section of the Indian market is quite ignorant about the need and benefits of life insurance, thus procrastinating its purchase.
Life insurance is an important instrument for millions of families overseas. This instrument helps them in protecting their families and loved ones after a devastating event such as the death of the insured. It is a noble instrument that offer sufficient amount of financial reimbursement to meet the basic needs of the family of insured when he is not around anymore. Unfortunately, there is a lot of misinformation prevalent about life insurance that fails people in discerning its benefits. Following are a few myths which are busted by the appropriate facts. This will provide you a clear picture about life insurance.
Myth 1: Life Insurance is not affordable
Fact: Life insurance policies like the term plan provided by companies such as MaxLife are reasonably priced. For a small amount of premium, you will be able to seek an extensive amount of life cover, thus helping your family to meet their basic needs in your absence. Sum assured available on a term plan is at least 10 times the amount of premium paid towards the policy.
Myth 2: Life Insurance is for older people
Fact: Youngsters often believe that life insurance plans are crafted for people in their 40s. However, death does not see age, gender, caste, or creed. So, the early a person get a life insurance policy, easier will be for him to secure the financial future of his loved ones. Moreover, life insurers offer a gamut of products such as Savings Plans, Income protection plans, and growth plans, which help in meeting investment goals as well as offer life cover to the person buying them.
Myth 3: Group Insurance is Adequate
Fact: Salaried individuals often fail to look beyond group insurance provided to them by the employer. However, this policy is only effective until the person is working with the particular employer. Job change or termination causes cessation of cover, thus leaving a person devoid of life insurance. To avoid the downfalls of such uncertain circumstances, it is recommended to purchase an individual life insurance policy. This will safeguard the financial well-being of your family when you are not around. Moreover, a life insurance plan can also act as income replacement in case of loss of job due to unfortunate circumstances.
Myth 4: I am Single, I do not require Life Insurance
Fact: A term plan may not benefit you, buy you are definitely going to grow old. Now who will take care of your health and other expenses in your old age? Retirement plans and Income protection plans provided by life insurance companies are adequate to make ends meet in old age. Thus, it is recommended to purchase them at an early age.
Myth 5: Life insurance is only for bread winners
Fact: No, life insurance is essential for each and every member of the family, be it the breadwinner or a dependant. As per the role you shoulder in the family, your insurance needs will vary, but they cannot be eliminated completely. To secure the financial well-being of spouse, there are income protection plans whereas the future of a child can be best-protected by opting for child insurance plans.
Having understood the facts related to life insurance, you should surely buy a policy for yourself and secure the future of your loved ones.