Myths About Buying Online Life Insurance

While IRDA has taken all the steps to clear the facts about buying life insurance, majority of people still misunderstand the product.

Here are three myths about buying Life Insurance and truth behind these myths 

Myth 1

Majority of customers only opt for online life insurance policies to avail tax benefits and rather end up buying excess insurance or are under-covered as they only buy Insurance for tax purpose and not actually to cover their lifestyle or secure their future.

Reality

While one's life is more important than tax benefit, one must understand there is no such thing as excess insurance or under coverage as this varies from person to person and from time to time. While one might feel that they have adequate coverage today, their needs might change within a year and they might need more insurance to cover them. So, buy insurance for more than just tax benefit.

Myth 2

People generally avoid buying Life insurance because they think they are not receiving much in return. Customers are more worried about the return value of their premium and take coverage of life as secondary factor.

Reality

When you buy life insurance online, it is more affordable as compared to unit-linked policies or whole life insurance. When you look at all these policies they are looking at polices according to their needs and not what is served to them. The person thus should buy a term plan online to solely cover his and his family's life and the premium amount they pay is according to their needs. Further the money they save on all these policies can then be utilized towards other investment such as mutual funds or stocks.

 Myth 3

One should only covers earning member of the house and not their kids or working spouse or housewife. 

Reality

While buying insurance online one should also look for cover other members of the family whether they are working or not as we all have human life value and every loss is a loss. Also, while all the financial responsibilities come on the breadwinner of the family one also faces loss when a non-working member passes away. Thus, value all life and cover even those members of the family that are not working.

Find out what insurance works best for your family here