As laymen, there are a lot of questions that tend to cross one’s mind when thinking about getting a life insurance cover, and then there are also confusions about what is true and what’s not. While some of the things you may have heard about life insurance plans are true, others are nothing more than myths.
So, how do you find out what’s true and what’s not? Well, in this article, we are going to list down 5 insurance myths and truths that should help you get the most accurate picture of life insurance plans.
Getting Life insurance is Expensive
This is not true at all! Life insurance plans are available across a range of budgets to suit individual needs and requirements. You can start with a basic plan to get coverage for your dependents without having to pay hefty premiums. Look for a term insurance policy as they are the most affordable when it comes to a pure life cover.
No Dependents. No Life Cover
Even if you don’t have any dependents, you should still invest in a life insurance plan that comes with a savings and maturity benefit. This will help you plan your finances better for your retirement by helping you build a corpus so that you can lead an independent financially secured retired life.
Insurance Plans Can’t be Custom Tailored
This is again a myth! Today’s market is highly competitive, and the level of customization that insurance service providers are offering to stay on top of the competition is increasing by the day. So, you can get a plan and customize it as per your requirement by adding additional benefits and riders such as critical illness cover, accidental death benefit, maturity benefit, etc. This will help you create a customized plan that’s well within your budget. Moreover, you can also choose your payout options as well.
Involves Lots of Paperwork
This isn’t true anymore! Today, the entire process of applying, and buying life insurance plans has been simplified thanks to technology. You can get one with just a few clicks on your computer, tablet, or mobile phone, and get policy documents delivered over email without the need for any hard copies. Moreover, you can pay premiums online which makes the entire process completely paperless and hassle-free.
A life Insurance Plan Should be Twice your Annual Pay
False! There is no set standard as to how much cover your policy should provide, as it’s an individual preference. We all have different needs and requirements, and financial conditions due to which how much one needs varies across individuals. The only thing you need to factor in though is the number of dependents, and their medical, education, and day-to-day expenses to decide on the amount of coverage you would need.
A life insurance policy is something that we all must invest in at an early stage of our career to get the most out of it. So, if you have been holding back on getting that insurance due to a few doubts that you, we hope we have been able to clear some of it, to help you make a decision.