DISPELLING CERTAIN

LIFE INSURANCE MYTHS

Truth behind some of the

common myths

Young people with perfect health do not need life insurance

There are many health conditions like cancer, which do not show any sign initially and are mostly diagnosed at the second stage. And, there is no such assurance that young people do not acquire such dreaded health conditions. Following this myth can make the family susceptible to severe financial adversities.

The insurance offered at my

workplace is sufficient

Most of the employers provide personal accident insurance and health insurance. These types of insurance provide you coverage in case of an accident or in case you need some support when health crisis come over you.

Employers generally do that to provide additional perks to you as part of your salary. So they are really not worried about how is your family going to sustain after you. If some people get life insurance in the workplace, even that is not sufficient enough and buying a separate coverage is a prudent step

Term plan is better as it is cheap

and lets me invest the difference

Term plan is suitable only if you want the

coverage for a fixed tenure. It does not provide

protection for whole life. Of course, you can

invest the difference in a better instrument but

what if the death comes after your term period

has expired?

You will have to forego all that you paid as a

premium unless the plan has the provision of

return of premium.

My growing age will make the life

insurance more expensive

This happens with health insurance and not

with life insurance.

Your responsibilities and your debts and

mortgage amount keep on decreasing with

your age. So it does not become expensive

instead it gets low-priced to buy life insurance

at an old-age

Only the earning-member needs

to have life insurance

Earning-member definitely needs to have a life

insurance cover; however the person taking

care of the family, especially a mother or a wife

carries a substantial life value.

Not only she is managing the tasks at

home, but she is also supporting the earning-

member of the family by providing him/her the

means to carry out the professional

responsibilities

No debts means no life

insurance

Some people perceive life insurance as a tool

to only pay back debts and loans. Besides

paying off the debt-liabilities insurance pays for

funeral bills as well.

Many policies provide benefits while you are

alive as well as you are able to get tax

deductions. Even if three members out of four

in a family are earning, there is an overall

impact on finances when one member is not

there.

Conclusion

Erroneous beliefs like this and more can put

false impression of what life insurance does

and will not let you take advantage of the

benefits it offers. If you are taking care of your

family in any way,

it is important that you take necessary steps to

protect it from potential hardships of life in your

absence. Examine the statements before they

influence your financial decisions and

consequently the lives of your dependants.