For various reasons, life insurance is like an elephant in the room that does not get talked about enough. And that has, over the years, given rise to a number of life insurance myths that we will try and break down.
Myth: Life Insurance is very costly
This cannot be farther from the truth. With proper research, you can easily find life insurance policies that fit into your investment budget and not burn a hole in your pocket. Even a small annual premium can allow for an impressive life cover thereby allowing your nominees to meet their needs.
A premium of less than Rs.1,000 a month can generate a term of Rs.1 Crore with a Term Plan, which is a substantial amount for your family’s needs in your absence. And there are other plans with a lower premiums tailored to suit your lifestyle and budget.
Myth: It's Too Early to Think of Life Insurance
There have been enough and more cases of people passing away young and leaving a family behind to fend for themselves in the absence of a life insurance policy. As they often say, death keeps no calendar, and it makes lot of sense to plan early.
With a plethora of life insurance policies to choose from, you can easily opt for a plan that suits your income bracket as well as your age. In turn, you can also receive investment goal benefits from life insurance policies.
Myth: Single People Don't Need Life Insurance
You might be single but there is a good possibility you will grow old and will need enough money to cover for the costs of debts, if any, and hospitalisation and funeral bills. Retirement and loss of income only adds to those factors.
In the absence of such a policy, all these overheads could easily turn into more than just a headache.
Myth: Non-Breadwinners Can Avoid Owning a Life Insurance
Every individual in a family, whether a breadwinner or otherwise, has a role to play in the house. The absence of that individual can prove to be costly for the entire family. If a stay-at-home partner passes away, the breadwinner would need to get domestic help for day-to-day activities.
Also, in case of such an eventuality, there is always a period that the bread-winner needs to take off from work and be with the family to help recover from the loss. There is a collateral cost involved with this that can be overcome by an insurance taken by the non-breadwinner.
Myth: Group Insurance Plans are more than enough
In some case they might be. For one, these plans are valid only till the time you work with that particular employer. Switching jobs mean you have to re-start with a new group policy. Also, in case you have a spouse with children, or you have a lot of debt that your spouse and other dependents might need to clear off, it is advisable to go for an individual Life Insurance policy as well.