Top 8 Biggest Life Insurance Policy Myths
Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

Biggest Life Insurance Myths

Biggest Life Insurance Myths
  • 18th Nov 2019 |
  • 10,202

Many life insurance myths influence people to keep this form of insurance out of their financial planning. This is a risky decision as the death of an earning family member can cause serious damage to their finance. Here are some misconceptions that you must not believe in

Myth 1: It is expensive

It is commonly believed that life insurance is costly. However, this myth is far from the truth. If you buy a term insurance plan, you can get a huge cover at an affordable price.

Myth 2: Young and healthy people do not need it

As a young person, you might not believe that you need a life insurance policy if you are healthy and do not have many liabilities. What you need to realize is that the great uncertainty of death does not consider age. You always need to make sure that your family is financially taken care of during your absence.

Myth 3: You cannot by it if you are unhealthy

Many people feel that this misconception is true. However, in reality, health issues do not make you unworthy of buying a life plan. In fact, if you are suffering from such problems, you require a life insurance plan more than a healthy individual. However, you need to note that in such an insurance plan, a persistent health issue and a family history of health complications will increase the premium.

Myth 4: Single people do not need it

If you believe in this myth, you are missing a great opportunity to build a fortune. If you invest in a life cover with maturity benefits, the money will multiply significantly over time. If you wait to marry and then invest in a life insurance plan, the money will have lesser time to grow.

Myth 5: Buying life insurance is not more important than saving money

This might seem like a fact, especially if you are young. However, the problem with this idea is that it does not take into account the possibility of death. Protecting your loved ones from financial challenges is essential, and you need life insurance for this purpose.

Myth 6: Life insurance by your employer is enough

Another myth about life insurance is that the policy offered by your employer is enough.However, the cover is discontinued in case of job change or termination. This risk should be avoided by purchasing an individual life insurance plan.

Myth 7: Insurance is a tax-saving tool

Tax-saving is an advantage that you enjoy when you buy a life policy. However, it is not the main purpose of the insurance policy. A life insurance plan is designed to provide financial protection to your loved ones.

Myth 8: The policy will help only after death

Some life policies come with maturity benefits apart from the death benefits. Hence, you can use the policy to build a corpus that can make your life after retirement more comfortable.

Now that you are aware of these life insurance facts, you can consider buying a policy and create a foolproof financial portfolio.

Invest in Term Life Insurance and secure your Loved Ones

Kotak e-Term Plan

Download Brochure

Features

  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

What Is Social Impact Investing and How Does It Benefit Society?

Difference Between Insurance and Assurance?

Difference Between Money Back and Endowment Policy

A Step-by-Step Guide: How To Make An Investment Plan?

How Does Life Insurance Work?

5 Advantages of Life Insurance Going Digital

How to Choose the Right Life Insurance Policy for Your Age?

भारत में जीवन बीमा पॉलिसियों के प्रकार

Why Do Life Insurance Agents Avoid Selling Term Plans?

1 CR Term Insurance Plan: How to Pick the Best 1 CR Term Plan

Term Insurance Vs Life insurance: Small Details, Big Differences

Term Insurance for Home Loan: How Term Plan Helps in Paying Off Home Loan?

Term Insurance Tips for NRIs in India

Choose the Nominee of a Term Life Insurance Plan Wisely

How To Use Different Types Of Life Insurance For Retirement Planning?

Important Life Insurance Terms You Must Know

Important Factors to Consider While Choosing the Right Term Period for Your Term Insurance Plan

Guidelines for Linking Aadhar and PAN to Insurance Policies

Think About Life Insurance Sooner than Later

Savings cum Protection Plans Secures Your Family from Unforeseen Events

NRI Premium Payment Options

Why is Medical Test Important While Buying a Term Insurance?

What Is Investment Insurance?

What Happens If I Stop Paying My Life Insurance Premium?

Adding A Child to Your Life Insurance Policy?

Life Insurance vs Mutual Funds

Top 5 Common Life Insurance Myths and Facts

What Is The Life Insurance Penetration In India And How Does It Compare Globally?

What is Human Life value and a Human Life Value Calculator?

Term Insurance Claim Process

What is Life Insurance?

FAQs on Life Insurance

Who Is A Nominee In A Life Insurance Plan?

Loan Against Life Insurance Policy

Can You Apply For A Life Insurance After Getting Heart Attack? Here is Everything You Need To Know

Digital Life Certificate for Pensioners Seeking Pension

How Many Insurances Should I Have?

How to Customize Your Life Insurance Policy with Riders

5 Things to Consider Before You Buy Life Insurance

Is Return-of-Premium (ROP) in Life Insurance Worth It?

Why Life Insurance Is Always a Smart Decision

What is the Difference Between Limited and Regular Pay Insurance Plan?

What are robo-advisors in insurance?

Take 100% Responsibility of Your Family with Term Life Insurance

All about Your Rights and Duties While Buying Life Insurance Policy

9 Most Important Things You Must Learn About Paying Life Insurance Premium

Why One Must Buy Term Insurance before 25 Years

Guide for Buying Online Term Insurance Plans for Senior Citizens

6 Different Types of Insurance Policies

Life Insurance for Millennials

Why You Should Buy Term Insurance under the MWP Act (Married Women’s Property Act)?

Choosing the Right Life Insurance

Why do I Need Life Insurance?

Different Types of Insurance Policies in India

Various Term Insurance Premium Payment Options Available in India

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

Why Buying a Term Insurance is Important for all Parents

Why You Should Never Cancel Life Insurance Policy

Key Things to Review in Your Life Insurance Policy Document

How to Revive the Lapsed Life Insurance Policy?

Beware of Phishing & Fraud Insurance Calls

Do Your Financial Planning with Life Insurance!

Benefits of Buying Term Insurance Plan for Senior Citizens in India

How Much Life Insurance Costs and How Much Insurance Cover You Need?

Why Term Insurance for Women is Important?

Types of Life Insurance Or One Investment, Many Options

Always keep your Nominee informed

Is it Possible to Make Changes in a Term Plan’s Specification Post Purchase?

What Is Insurance Coverage?

What Is the Procedure to choose a nomination in life insurance policy?

What is Group Insurance?

Is Life Insurance For Millennials Really Needed?

Life Insurance for Overweight Applicants

ULIPs: Suitable for all

What Is Staggered Payment Option Under Term Insurance Policy?

5 Smart Steps to keep in mind while buying term policies

Can NRI Buy Life Insurance in India?

4 Benefits of Gifting Life Insurance Cover to Your Spouse

How to Find the Best Term Insurance Plan in Seven Steps

All About Backdating in Life Insurance

Life Insurance with Money Back vs Without Money Back

Important Terminologies of Life Insurance

Important Features of a Term Insurance Plan

Is Voluntary Life Insurance the Same as Basic Life Insurance?

Best Insurance Plans in India

Reasons Why Term Insurance Claims Get Rejected

Can You Transfer Life Insurance Policies to Another Company in India?

Benefits of Term Insurance with Critical Illness Rider

Life Insurance for Overweight Applicants

How to Choose a Life Insurance Policy

6 Things You May Not Know about Life Insurance

Is Life Insurance an Investment?

Why do most Indians choose the wrong way to buy life insurance?

What is a Single Premium Term Plan and its Tax Benefit?

How Often You Must Review Your Life Insurance Policy?

What Should One Consider Buying: Term Insurance or Traditional Life Insurance

5 Easy Steps to Buying A Policy

How Do Term Insurance Plans Differ for Smokers?

What is Underinsurance & The Dangers of Being Underinsured

Life Insurance Vs. Mutual Funds Investment

Does Family History Affects your Term Life Insurance Rates?

Can An Individual Buy Multiple Term Insurance Plans?

Term Life Insurance vs. Accidental Death Insurance

Is It Time to Review Life Insurance Policy of Yours?

What Is Insurance Rider and It’s Benefits?

Does Life Insurance Policy Cover Covid Death?

Life Insurance vs Health Insurance

Do Life Insurance Premiums Increase Every Year?

Voluntary Life Insurance Policy Vs Group Life Insurance

A Term Insurance Guide for Disabled People

Kotak Life Claim Settlement Ratio

Customer Awareness on Information Security

What is a savings plan?

Is it Worth Buying Disability Rider on Term Insurance?

How to Choose Life Insurance for All Ages?

All about IRDAI

Term Insurance Vs Car Insurance: A Budgetary Choice You'll Regret

Are Deaths Due To Coronavirus Covered by Kotak E-Term Plan?

10 Most Frequently Asked Questions - FAQs on Term Insurance

Life Insurance and Retirement Planning

Types of Life Insurance Policies in India

5 Common Life Insurance FAQs and Answers

How to Buy a Term Life Insurance Online

What Is a Whole Life Insurance Plan?

Nominee in insurance - A Complete Guide on nomination in insurance

Does Life Insurance Pay for Suicidal Death?

Difference Between Term Insurance and Endowment Plan

All about Life Insurance Calculators

Details Required To Be Filled In A Life Insurance Form

What Is Financial Planning?

Health Insurance VS Life Insurance

Choosing a Life Insurance Beneficiary

Why Renewal of Term Insurance Plan is Important

What Is Surrender Value (Cash Surrender Value) in Insurance and how is it calculated?

Does Life Insurance Cover Terminal Illness?

Staying Insured While Investing

How Much Life Insurance Cover Do I Need?

Is it Possible to Reduce Life Insurance Premium without Affecting Sum Assured?

What is Minimum Life Insurance Policy?

All You Need to Know About Life Insurance - Its Benefits, Features, and Types of Life Insurance

Life Insurance Plans for Women

5 Reasons Why a Women Should Buy a Life Insurance

Compare Different Life Insurance Products Offered By Kotak Life

Why Your Family Should Know About Your Life Insurance Policy?

Most Common Life Insurance Riders to Enhance Your Existing Policy

Choosing Between Short-Term & Long-Term Insurance Plans

How to Make Death Claims on Life Insurance?

Why Online Term Insurance Plans Cheap?

Should you buy a Renewable Term Life Policy?

Sabse Pehle Life Insurance

5 Reasons Why You Need Life Insurance in College

7 Superficial Reasons People Avoid Buying Insurance Online

Insurance Changes You Need to Make Post Marriage

Term Life Insurance Vs Money Back Life Insurance

Everything You Must Know About ULIP Riders

Life Insurance Policy Closure

Different Types Of Life Insurance In India

Types of Insurance You Must Invest in for Secure Future

5 Ways to ensure faster settlement of claims

Process of Filing A Claim For Life Insurance

Is It Advisable To Have Multiple Life Insurance Policies?

All About Life Insurance and How It Works?

When Should You Review Term Life Insurance of Yours?

Life Insurance Beneficiary

When are Millennials required to take out a life insurance policy?

Different Kind of Deaths that are Not Covered in a Term Insurance Plan

How Much Life Insurance Do You Need?

Insurance Vs Investment - A Guide to Your Financial Goals

Role of IRDAI in the Insurance Sector

“Life” Insurance or “Death” Insurance?

How to Select a Perfect Life Insurance Policy in India to Protect Your Future?

First Job? Here’s Some Tips on How to Manage Finances

How to Calculate Human Life Value(HLV)?

Life Insurance and Millennials

What is the Current Trend in Term Insurance?

Difference Between ULIP and Endowment Plan?

Can a Term Plan be the Substitute for a Retirement Plan?

How to Buy a Life Insurance Plan?

What is Sum Assured in Endowment Policy?

What are the Benefits of Endowment Policy?

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

What Should One Expect During the Medical Evaluation for Life Insurance?

What is an Endowment Plan?

In India, should NRIs purchase life insurance?

Comparing low premium term insurance Is Not the Only Factor While Buying Life Insurance

Terms and Conditions of Term Insurance Plans

5 Things to Keep in Mind While Buying Life Insurance Policy