Myth Busters: I don’t need Life Insurance

Life is unpredictable and full of risk. Some risks can be avoided, while others are inevitable. While we may never know when we could be a victim of a risk, we can always ensure to be financially prepared for them. This can be done with the help of life insurance. The cover amount that you get from the policy helps in coping with life risks. However, there are many people who do not consider investing in one. The reasons can be many, however, one cannot overlook the benefits of this policy. Read more to see the myths related to this policy and how they are busted.

What is life insurance?

A life insurance policy is a type of policy in which the insurer financially compensates the beneficiaries of the insured. When the policyholder passes away during the term of the policy, the insurer will compensate the family of the policyholder with a death benefit. The amount they receive will help them in maintaining financial stability while also managing necessary expenses.

What are some of the myths?

While people investing in this insurance are aplenty, there are still many who stay away from the policy due to some common myths. Debunking these myths is the only way to educate general masses about the benefits of this insurance. Listed below are some life insurance myths debunked:

  1. It is quite costly

While it is true that the policy costs a lot, much of it is dependent on which type of policy you are opting for. There are different types of policies that have different benefits. It is on the basis of those benefits that the cost of the policy is decided. A policy that might benefit one person does not have to necessarily benefit another person as well. It is always better to do some research and compare different policies before you make decision. There are policies that are quite affordable for everyone. Always seek a professional opinion to get a better understanding.

  1. My office policy covers me

Many companies offer insurance cover to their employees. Usually, these policies are group policies, i.e, multiple employees are covered under one policy. The caveat of such policies is that their cover is valid as long as you work at that organisation. If you join another organisation, the cover of the existing policy ceases to exist. Also, the cover that is actually offered in corporate policies is much lower. You are required to pay more if you want to increase the cover.

  1. I do not have any dependents

Many young earning individuals spend their salaries rather quickly. This promotes an unhealthy habit, especially if the person has no one dependent on their policy. However, high earning individuals tend to spend more on expensive things without considering the consequences of it. This could be spending on a vehicle or an electronic device. However, if the person were to pass away suddenly, with existing outstanding debts at the time, the nearest of the kin could be required to clear off the remaining amount. In such cases, the life cover from the insurance could help in clearing off the debts without burdening any of your immediate family members.

Why the insurance is a must?

The myths mentioned above are just a handful of the many people like to believe in. The reality is that due to the ever-increasing inflation, the cost of living has also increased. This puts a lot of strain on the salary you earn and leaves you with meagre savings. This could mean an uncertain future for your loved ones. To avoid this possibility, it is always advised to invest in this policy.

One thing that can help you lower your worries is the life insurance premium calculator. The calculator will help you in getting an idea about the premium you will be required to pay based on your needs. You can also get in touch with an insurance advisor to get more knowledge about the policies and their benefits.