Are you aware of these myths surrounding life insurance policies?

Strangely enough, people may end up digging out a number of reasons for not taking up a life insurance policy. While some of them reason that they are not “old” enough to purchase a cover, there are others who simply opine that life insurance policies are a sheer “waste” of money. However, if you sit down to think deeply about it, you will only be able to understand that a properly selected life insurance scheme only serves as a well-thought- out financial decision owing to the fact that the financial security of your family depends on it.

Most of the fallacies (like the ones mentioned above) spring from the fact most of the individuals are not really interested in educating themselves about life insurance in general. It is very important to get rid of the “overwhelming” myths surrounding life insurance before purchasing a policy. So what exactly are these “myths”? Read on to find out!

The main objective of life insurance is saving tax

No! not at all…. There is no death of individuals who actually think that the basic function of life insurance coverage is to help you save up substantially on tax. However, tax savings are only an “added” advantage of securing an insurance policy. Its chief purpose is to protect your family during your absence and also to help you in establishing a substantial corpus for yourself to lead a comfortable retired life. In short, tax saving is only the secondary benefit— not the primary one.

Buying insurance is not necessary when you are single

There are some, who simply rule out the importance of life insurance from their lives owing to the fact that they are not single and do not have dependents. Needless to mention, it’s simply not advisable for you to think on those lines. If not for your dependents, you should consider investing in a life insurance policy to see through your own post retirement days without hassles. You, in fact, can opt for a money-back plan which offers you returns at regular intervals.

Insurance only offers post death benefits

Again…one of the overwhelming misconceptions surrounding insurance policies is that they offer benefits only after death. But that’s simply not true! By now (after coming across the post), you must already have gained an idea as to how an insurance policy can actually help you in your post retirement days. You can opt for an endowment term where you will be paid a lump sum after a fixed term.

You do not require an insurance cover because you are young

It is better, in fact, to consider an insurance plan when you are still young. It will help you fund crucial events of life like marriage, child birth, your child’s education, marriage etc.

Life insurance plans are costly

The cost of plan will vary according to your needs. Perhaps you should study your needs first and then zero in on a scheme which will meet your objectives. There are no written rules that insurance plans will be costly. Make sure you are comparing the rates offered by premium carriers in this regard.

3 Responses to Are you aware of these myths surrounding life insurance policies?
  1. business Secretarial services
    October 9, 2014 | 7:27 am

    These are among the best inexpensive Christmas gifts for coworkers that make great sense around the office.
    With some exceptions, shareholders are not liable
    for the debts and obligations of the corporation or from any litigation where the corporation is the defendant.

    This is important, as they are not given any tax haven stigma.
    NGO rules have to see whether the class to be
    benefited or net before granting NGO registration in India.
    Offshore company formation, in its simplest terms, is setting up a company abroad.

  2. Stella
    October 15, 2014 | 4:53 pm

    This will also be an important factor in deciding the kids’ party themes.
    Many parents think that finding an ideal spot for the
    Kids Party in Sydney is a tough job because there are heaps of aspects that they
    have in their consideration before making a final call for the venue of the party.
    When the games are over the team that wins the competition gets the honor of throwing pies filled with
    shaving cream in the faces of the losers.

  3. Lavonne
    May 7, 2015 | 1:55 am

    Earlier this week we asked you what video enhancing software you thought
    was best You responded in drive, and we’re back to share the top six tools Lifehacker readers use to edit their
    movies. Being a video editing software program developed by Apple Inc,
    Remaining Cut Professional has numerous noticeable features comparable to a powerful consumer interface, quite
    helpful keyboard shortcuts & lots more. If you want
    to create stunning movies without consuming that much
    system resources, Sony Vegas Film Studio will, most likely, be
    the most effective device for Windows PCs. Altogether, its features make Sony
    Vegas Film Studio an all-in-one resolution for professionals who
    don’t want to spend a lot. Key Options: HD Help, Non-harmful
    editing, limitless video & audio tracks, linear timecode display.

Leave a Reply

Wanting to leave an <em>phasis on your comment?

Trackback URL