Life insurance is a must for every individual and household. It is even more important these days when the chances of lifestyle ailments and sudden mishaps have also gone up exponentially. Yet, many people still stay away from purchasing these plans owing to various wrongful perceptions. Here’s debunking some of the biggest life insurance myths that may hinder your decision-making otherwise.
Life Insurance Myths that You Should Know About
Here are some life insurance Myths that should be highlighted in this regard.
It is only useful if the policyholder dies- It is a myth that all life insurance plans only come in handy if the policyholder passes away. While many life insurance policies are designed primarily to provide a death benefit, there are varying types of plans that come with features like the return of premium, survival benefits, maturity benefits, and even waiver of premium add-ons. These are features that will help you take care of various objectives at different points in life.
Young people do not need it- Life insurance is necessary for everyone, irrespective of their age. Life can come with unpredictable and sudden mishaps. If you buy young, the premium amount will be considerably lower for relatively higher coverage. You will have to shell out a much higher amount if you want to get the same coverage in the future (when you are older).
Life insurance investments are always complicated- Nothing can be more false. These plans are made in a way that is easy to grasp. There are several kinds of plans, each with specific features and benefits that you can choose from (as per your life goals and situation). While some products can be complex, many are designed to be straightforward. Take a note of these aspects before investing.
Paying the premium is a financial waste- You should never feel this when you’re thinking of buying life insurance policies. These premiums are investments in your mental peace and securing the financial futures of your loved ones. It is a very small price when you know that your family members will be financially secure and independent in your absence.
It is hard to settle life insurance claims- These days, most reliable insurers have made it simpler to file claims online. There is easier documentation, and you can expect quick settlement of claims, provided all terms and conditions are met. It may be helpful to check the average claim settlement ratio of reputable insurers in India for a clearer picture.
Life insurance is not affordable- There are several types of plans at different prices that suit every budget. Term plans, in particular, offer high coverage for reasonable premiums, and you can gradually scale up coverage later on as well.
Life insurance is only for main income-earners- It is another life insurance myth that coverage is only for those who are primary income-earners. It is necessary for spouses, children, and other family members. They require financial support in your absence or in case something happens to them too. The potential financial impact of losing a non-income-earning spouse or parent should not be overlooked.
So, bust these myths and get life insurance as early as possible. You should compare plan features and premiums before making a final decision. Make sure you read the policy terms and conditions carefully at all times.