Life Insurance Myths

Life Insurance Myths

In context to the instability of the lives of the humans nowadays, many of us enrolled ourselves in life insurance policies. Where many find it as a necessity in the modern days, the funny part is the entire process stays a glitch. First, many of us don’t even know the meaning of “life insurance” and yet they get blind to it because it fetches some amount of money after their death. The Life Insurance is actually a contract between an insurance policy holder and an insurer, who promises to pay a designated sum of money in exchange for a premium upon the death of the insured person. Immature deaths, such as accidents, severe illness, trigger the amount to paid rather than the expected, old age one. And secondly, there are a hell number of misconceptions regarding the life insurance policies and benefits because the Indian movie directors know less. The famous myths are given below:

life insurance

Life insurance is for older people

The first and foremost picture that our brain makes us visualize, when we hear about life insurance, is an old man sitting in his chair reading his daily newspaper with a broad smile and a sense of contentment in his face. But death, being a part and parcel of our life, may occur at any time and hence, a cover is indeed a need for people of any age.

Life insurance isn’t for the bachelor

This is common notion that being a bachelor, we don’t need any life insurance. For people having a longer life span, having a life insurance policy will act as an added financial stability during the hours when they lose all their bone and muscle strength. Also, life insurance will cut short the amount they are paying taxes.

Expectation of higher returns

Lack of knowledge can lead to higher expectations. You should always read the policy plans thoroughly and accordingly set your investments. If you are taking life insurance policies to be fixed deposits in the banks, then you’re wrong. Security in case of unexpected mishaps and retirement benefits should be the sole priority in choosing a policy plan.

Life insurances on kids

The Bollywood movies are to be immediately blamed if anyone you are thinking about this mistake or have already committed it. Many of us will unintentionally opt for it thinking it to be a direct way of funding the money to their kids. This is to be strictly kept in mind those nominees and life insurance policy holders are two poles apart. The earning member’s name should always be enrolled for LI policies.

Life Insurance agent knows it all

Before rushing into an LIC agent, you have to we’ll aware of the LI policies that suit you the best. The bitter truth is that a large number of LIC agents are poorly trained and offer customers to the policies which are going to profit them. You must do some research of your own about the various plans and schemes in order to take the maximum benefit and meet the future requirements whole-heartedly.