Life Insurance Myths- Stop Believing them!

There are so many people who think buying life insurance is utterly useless. However, you can’t afford to believe in myths like this. Let’s have a look at the different myths people have about life insurance and why shouldn’t believe them.

Debunking all the life insurance myths right away!

#1. Life insurance is un-affordable!

It is a human tendency to first think about the ‘cost’ whenever we buy something. Same applies to life insurance too. You may think that life insurance is an expensive affair, however you are just following this myth of ages. Term insurance which is a type of life insurance is very much pocket-friendly that can fit into anyone’s budget. Besides, buying a life insurance plan at a younger age would certainly fetch you a lower life insurance premium.

#2. Since I am young and quitehealthy there is no necessity of life insurance

This is one of the most popular myths that needs to be debunked as soon as possible. Any person irrespective of whether he/she is married or single, needs a life insurance to protect his family and let them lead a secured life. When you are young, you tend to be healthy too. Therefore, life insurance companies are sure of lesser claim registration. Therefore, the premiums too are on a lower rate. So, do not wait till you turn grey, buy a life insurance plan today.

#3. I have health problems; the life insurer would reject my life insurance application

There are so many people who suffer illnesses such as a heart condition, blood-pressure issues, cancer, etc. These illnesses would certainly hike your life insurance premium, but won’t render you unqualified for life insurance policies. There are cancer care plans too and specialised plans and riders that you can opt for.

#4. I need to buy a life cover that should be twice my salary

Wrong!It would be wrong on your part if you measure the life cover based on your annual income. However, it should ideally be measured based on your finances, debts, medical expenses, future security and cost of living of your family. Your life insurance cover is based on the amount of cash flow that your family would require to meet their requirements post your demise.

#5. My employer is generous enough to offer me a life insurance coverage; so I find it important to buy onepersonally

The life insurance policies offered by employers usually have a payout that is lower. There can be so many ways to start investing for your family’s futureand therefore buying one individually and personally should be motive. After all, there are chances when you might wish to switch your job for better opportunities and your new company may not offer you a life insurance policy. So, buy one individually instead of depending on your employer.

#6. I should buy Life Insurance only for tax saving purpose

Wrong! The motive of a life insurance plan is to provide financial protection to you and your family in your absence. Buying a life insurance policy would be building a good corpus for your retirement or for your family’s requirement post your demise. Therefore, do not like a fool and buy life insurance just for saving tax.