Some Misconceptions Regarding Insurance That Need To Be Busted

By Author: Prince Gupta
Total Articles: 3
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The usage of life insurance products as an all-inclusive instrument to battle uncertainties of life is still not thoroughly comprehended in India.
One of the chief reasons for this is the misconceptions associated with life insurance. There are many misconceptions and false information concerning life insurance. Here, in this article, we will talk about some prevalent insurance myths to help you dispel your doubts and gain an in-depth understanding that will allow you to make an informed decision.
Buying an insurance policy is unquestionably a rational decision. It is a sturdy risk management decision, which shields an individual against risks of:

Mortality: Death or disability (term)
Morbidity: Disease (critical illness)
Longevity: Flourishing beyond your income-generating capacity (annuity and long-term guaranteed returns)
Market volatility: Guaranteed returns (participating or non-participating products)
Financial indiscipline: Saving your capital from commercialism and lack of discipline

Moreover, it promotes comfort and the ability to assemble products for a lifetime. ...
... Only insurance plans present long-term guaranteed returns and don't entail any call option.

Let's talk about those common myths in a detailed manner.
Life Insurance will only be functional after My death:
Life insurance is a risk management instrument. Risk doesn't always come with departure from life but also with living too long. Advancements in medicine and science are extending life expectancy. If you were to live till age 90 and reach retirement at 60, what will help you manage your expenses? Risk also affects investments, which can be affected by market volatility, inadequate financial planning, or scarcity of financial discipline.

Insurance can assist you reinforce your financial future efficiently. There are multifarious possibilities to build a corpus to make you financially independent during retirement, outrageous medical expenses, or increase your wealth. Investing in the right insurance product at the right time can do wonders for your financial health.

Insurance Coverage by my company is always enough:
Your employer covers you only till you are working with the corporation. The policy gets lapsed once you resign or retire. If the organization faces any financial disruptions, it's possible they even cancel the policy or lessen the benefits. In this case, you will be shipwrecked when you are in a dire need of an insurance cover.

Maybe employee insurance works well when you are young, healthy, and doesn't have to manage responsibilities.
Nevertheless, it won’t be sufficient to cover your future family’s requirements such as children’s education, marriage, medical needs of aging parents, inflation, and so forth.

Secondly, the cover may only possess a death benefit. It means it will not manage your expenses that will emerge post retirement.
It is advisable to boost your employer-provided cover with another insurance policy that is specifically tailored to manage your future needs. Buy an insurance plan that can keep you financially healthy all through your living years and keep your loved ones financially secure even if you are not around them.

Young, Single and Healthy People don't need Insurance:
Change is the rule of nature. You cannot run away from it. Perhaps you are having the best time, but do you know what the future holds for you? Life insurance is one of the products that you can't buy immediately after finding you desperately needing it. Buy Online Insurance Plans for a time when you need it because prevention is better than the cure. Additionally, the best time to buy a life insurance policy is when you are hale and hearty and enjoying your youth since the premiums are lower, and you can acquire high life cover at extremely low premiums.

The best Insurance Plans & Policy in India can also help you fulfill family commitments, or manage your health-related and retirement expenses.

Life insurance is expensive
People usually think that buying a Life Insurance premium is an added expense and luxury. Who said that insurance plans always have to be expensive? It relies on numerous aspects and can be accommodated to serve your premium paying capacity. You can increase the premium steadily. Be it pure risk or risk cum savings product, the younger you are, the lower is the premium rate in any policy.

Term insurance generally supplies a considerable sum assured without making you pay heavy premium fees. You can always begin with a small investment and gradually expand your coverage as your income and responsibilities expand across different phases of life.

Term insurance is the only type of life insurance:
Presently, it is not troublesome to find life insurance companies that aim to present numerous products, such as traditional savings products, unit-linked, and pension products to help you manage diversified risks. So, assess your current and future financial requirements before you buy any insurance policy.

I will reap better advantages from investments other than insurance plans:

This is one of the most prevalent misconceptions about insurance products. Life Insurance policies normally are long-term financial tools that are devised to deliver competitive risk-adjusted returns with regard to other asset classes, in the long run.

Buy Online Insurance Plans right away and save yourself from the trouble of going out to find perfect plans within your budget. Take a step ahead towards a happy and blessed future.