Life Insurance Policy - Unfolding Myths & Understanding Facts
Misconceptions spread like wildfire on anything and everything that we come across. Life insurance is not an exception. For instance, opting for a scheme here is the best way to avoid taxes; everyone says. This prompts people to go for the lowest premium they can avail. And they deprive themselves of the amazing protection a higher amount can offer.
Life insurance does offer tax benefits. But that is just one among its many rewards. Its ultimate goal is to protect you in the instance of death or any other unexpected financial emergency.
Given below are some other common myths that are related to this protective coverage scheme.
Life insurance drains my budget
The statement may appear true for someone with a tight budget. But that is not an excuse to devoid your family of the protection that it deserves. You can go for a term insurance. It has the lowest amount as premium among all its schemes. But the life cover your family can receive in your absence is ten times higher.
Life insurance comes to effect only after my death
A life insurance policy keeps your family financially secured when you are not around. But that is not its only objective. The schemes are designed in such a way as to help you live in peace for your family’s future. Taking a life insurance policy ensures you live a comfortable retired life. Some policies also take care of your sky-rocketing medical bills.
My employer has insured me
Your employer does insure you. The company has your best interest in mind. It needs you to stay healthy and productive all through the year. But it is cancelled the moment you change your job. For this reason, it is highly recommended that you take a personal insurance. It gives you the support you need during a financial crisis.
Insurance is for people above 30
Youngsters in general shy away from taking insurance policies. They are of the view that it is for people above 30 years of age. But the truth is the opposite. Death never considers age or gender when it decides to call someone. The earlier you take a policy, the safer the future of your loved ones will be. Choose from among the galore of schemes your choice company has to offer. Save to have a comfortable retired life or pursue your dream of buying a new home; all without compromising your life cover.
I am too old to get insurance
It is true that the older you are, the more limited your choices are in the market. You will also have to pay a higher premium if you are a senior citizen. But you can insure yourself or your loved ones if you choose to do so.
Choosing a suitable policy is a daunting task
Life insurance schemes are there in plenty. But a term insurance is sure to be the ideal choice for many. It lets you determine the term and the amount of coverage you need. If you die within the stipulated time, your family receives the benefit of your concern for them.
Consult a well-established life insurance agency before making that final choice. And take an informed decision.