Insurance Basics

Life Insurance Myths

Term Insurance Meaning

There are a lot of misconceptions associated with Insurance. Insurance is mostly viewed as a tax saving tool and hence enough cover is not taken to cover you and your family under necessary circumstances. Always take an informed decision before considering Insurance needs for your family.

What are the different insurance myths?

Following are the most common life insurance myths:

  1. Insurance is for saving tax

    Saving tax is just an added advantage of insurance policy. The main objective of insurance is to provide protection to you and your family and to build an assured corpus for your future needs.

  2. Insurance will benefit only after my death

    Insurance policies provide protection to you and your family. One of the main objectives of taking insurance is to provide financial cushion to your family in case you are not around but it's not the only objective. Insurance helps you to build a corpus for yourself; provides you with comfortable retired life and even takes care of your lengthy medical bills.

  3. My group insurance is adequate

    Your group insurance might be adequate but what if you change the job? Once you change the job your group insurance will cancel off and you will not get any insurance benefit. So it is always advisable to take insurance other than the insurance offered by your employer.

  4. Only the Breadwinner of the family needs insurance

    Every family member needs insurance. Your work profile changes the insurance needs but certainly does not eliminate them.

  5. I'm single and don't have any dependents, therefore I don't need any coverage

    You might not need a life insurance policy where your nominee is taken care of but you certainly need a policy to take care of your health and retirement worries..

  6. Life insurance is far more important than health coverage

    As the health costs are increasing by the day, taking a health insurance plan has become as important as a life coverage plan. Health plans, disability plans and critical illness plans provide you with financial cushion and compensate for the financial loss you suffer in case you are not able to work because of illness.

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