Common Myths And Truths About Life Insurance

   Do you feel worried thinking what will happen to your family after your death? If yes, then you will be relieved to know that you can secure financial stability for your family after your death by applying for life insurance. Now if you are not familiar with the term life insurance, then we will explain it to you.

A life insurance is a contract between an insurance policy holder and an insurer, where the latter promises to pay a beneficial sum of money to the policy holder after their death. The policy holder is required to pay a price, either on a daily basis or once.

However, many people are hesitating to apply for life insurance, mainly because of some misconceptions. In this article, we will learn about the myths associated with life insurance and also the truth about it. Let us begin.

Myths about life insurance

Some of the myths about life insurance are as follows

Life insurance will be useful only after the death of policy holder

One of the common misconceptions about life insurance is that it will be useful only after the death of policy holder which is not entirely true. Life insurance plans can be used before the death of policy holder also, it mainly depends on the type of life insurance policy chosen by you.

You can choose an insurance policy for retirement which will enable you to enjoy financial independence after retirement. 

You can also choose term insurance plans. This type of insurance plan has been designed to support those people who are suffering from terminal diseases. It will help them to meet the expenses of medical treatment.

 You also have the opportunity to use endowment plans as property building tools. A timely investment in the right life insurance plan will not only benefit your nominee but also you since both of you can earn a profit from these investments.

Life insurance is expensive

Another misconception about life insurance is that it is quite expensive and only rich people can afford them. However, there are various affordable options available for you to choose from. You can choose the plan which is suitable to your budget.

Moreover, there are multiple ways of reducing the cost of a life insurance plan. For instance, you can get a low premium if you buy a life insurance plan at a young age. 

Life insurance is not for young and healthy people

Many people believe that young and healthy people do not require life insurance but they are wrong. Life is uncertain and unpredictable. A healthy young person can also loss his or her life due to accidents, so life insurance is required by them also for supporting their family members.

During the early stages of their career, they will not have the opportunity to accumulate a large amount of money through savings. Life insurance will provide support during such cases and ensure that your family does not suffer from lack of funds.

You should also remember that you will have to pay a lower cost of premium if you apply for life insurance at a young age. The cost of premium will be higher if you apply for life insurance during your advanced age. 

Getting life insurance is a troublesome process

It is a common belief among many people that the process of getting a life insurance is not easy at all. The process may not be easy, but it is not as difficult as you may think. The internet has also simplified the process getting a life insurance at present.

You do not have to depend on insurance agents or wait for an appointment with your insurer. You can search for insurers in an online platform and compare them with each other. After this process, you can select an insurer whose policies are more suitable to you.

You have to follow some simple steps after choosing your preferred insurer. First, you have to visit the portal of your chosen insurer. Then you can calculate the premium which you will have to pay. You can use online calculators for this calculation. After this, you are required to answer some question about your health conditions.

You will also have to answer questions regarding your profession and personal preferences. After completing all these, you will have to upload your KYC documents and make an online payment for buying your insurance plan. This is an easy process which you can do from your house only.

Life insurance policies are only for the breadwinner of the family

Another major misconception about life insurance is that it is only for the earning member of the family. Beside the breadwinner of the family, life insurance policies are available for other family members also. There are various types of life insurance plans available, such as retirement plans, child plans as well as unit-linked insurance plans.

These insurance plans have been designed in a certain way in order to make them suitable for various requirements. Although life insurance is a medium for safeguarding the family especially during uncertain times, it can also be used as an investment or as a savings instrument by the other members of the family.

When other members of any family, beside the breadwinner of that family, have their own life insurance policy, then those insurance policies can act as a support system during uncertain times.

Insurance from employer is sufficient

Many people make the mistake of thinking that insurance provided by their employers is sufficient but they should know that the insurance cover provided by their employers will be available to them until they remain in their service.

The insurance cover provided by the employers are also not sufficient to meet the future requirements of their family members. It will be better if you get a life insurance plan of your own. It will be much more beneficial for your family members in the long run. 

Life is uncertain. We do not have any idea what may happen at the very next moment. It is recommended that everyone should have a life insurance policy. It will provide them with financial stability during uncertain times.