Life Insurance 1506 views July 18, 2019

Life Insurance Policy – Popular Myths and Facts in India

Buying a life insurance policy is not a choice – it is a compulsion. You simply cannot afford to live in today’s day and age unless your life is covered by a good life plan from one of the good life insurance companies. You should get life insurance without having any misconceptions about it. Sadly, there many insurance myths that affect the decisions of the policyholders. You need to educate yourself about the correct life insurance facts and then make a good choice by buying an appropriate cover for yourself. Unless you get a good life plan, you can never secure the financial well-being of your near and dear ones. Take a look at this article to know more about the common life insurance myths and how you can stay away from them.

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Common Life Insurance Myths That You Must Know

Listed below are some incorrect facts that people associated with life insurance schemes and plans. Read on to know more:-

All Insurance Plans are the Same

There are different life insurance types. No two plans are the same. You, therefore, cannot go and ask for generic life insurance, as that does not exist! Life has subparts such as term life insurance, whole life insurance, endowment insurance, money back plans, ULIPs, pension plans, etc. You, therefore, need to understand the plans and what they offer. You will also notice that the life insurance premium on the different plans is not the same. This is again due to the difference in coverage offered. Therefore go over the types of life insurance policies and get the most appropriate cover for yourself.

Comparison is a Waste of Time

The next myth is that you waste your time when you go in for a life insurance comparison. Life insurance comparison is crucial and you should never skip it. The process hardly takes a few minutes and so never wastes your time. Rather, you gain tremendously out of it. So next time you go shopping for a plan, make sure you use a life insurance rate calculator to find out the different plans and their prices.

The Company Offered Insurance is Enough

Many organizations offer group life insurance to their employees. You may feel that the cover you have from your employer is enough. But this is a major myth that you should stay away from. Group insurance is good, but it needs to be backed up by a cover of your own. Have you thought about what would happen if you lose your job suddenly? You will be left without a life insurance coverage overnight and we all know just how scary and dangerous that can be.

A Stay-at-home Parent Doesn’t Need Insurance

If you are a stay at home parent or your spouse is, a life insurance coverage is needed. Stay at home parents do not earn an income in the traditional way, but they make tremendous financial contributions to the family. They act as a tuition teacher, a cook, a driver, a caregiver, etc. In their absence, you would need to hire all these people and pay for them. So you definitely need to cover the life of a stay at home mom or dad, when you look to secure the financial wellbeing of the entire family.

It is Difficult to Get Life Insurance in India

A common life insurance myth is that a person who is older or is slightly unhealthy cannot possibly get a life insurance policy. since there are so many life insurance companies offering such a vast number of life plans, everyone is assured of finding a cover for themselves. So do not think it is difficult to get a life cover because it really is not. All you have to do is do your research and find a good insurance policy to cover your life with.

Investing Money is Enough

Everyone makes investments. They can be something as straightforward as a fixed deposit or something more complex like a mutual fund. While these investments are good, you cannot compare them with a life insurance cover. You need to buy a life plan even if you have investments. The money you make from an investment is never fixed. It can also tank completely without announcement. You cannot take such a huge risk, so keep your investments and your life insurance needs separate at all times.

These are myths that you should stay away from. Get life insurance to stay wholesomely covered.

Final Conclusion

It is very easy for you to find and buy an excellent life insurance policy. There are many options and you find the covers at some of the most affordable rates. If you don’t have a good cover with you yet, go right ahead and buy one of the best life insurance plans without wasting any more time.

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