Top 5 Common Life Insurance Myths and Facts

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Top 5 Common Life Insurance Myths and Facts

Buy Life Insurance Now
  • 20th Oct 2021
  • 420

Top 5 Common Life Insurance Myths and Facts

We live in the world of the Internet, where information on anything and everything is just a click away, and this also holds true for life insurance policies. This abundance of information has already made self-education on the topic challenging, which leads to several misconceptions, thereby turning a simple subject into a convoluted one. This article will debunk some widespread myths about life insurance plans!

Life Insurance is an Exorbitant Expense

After gaining some background on what is life insurance, you may easily discover life insurance plans that suit your investing bracket that does not pack a punch to the budget if you do your research well. Even a little annual cost can provide a substantial basic life insurance policy, enabling your beneficiaries to fulfil their financial needs with the numerous life insurance benefits.

I don’t require insurance as I have no dependents

It is advisable for every single person to buy enough life insurance to cover personal debts, medical expenses, etc. Life Insurance benefits your family to pay off hefty unpaid bills after your death. These situations amplify the consequences of retirement and financial challenges. As a result, a life insurance policy might considerably assist you in managing these expenditures.

Insurance Plans Can’t Be Tailored to Your Specific Needs

In this day of growing competition, nothing stays the same for long, and insurance policies are no exception? Insurance plans can now be tailored to fit your unique requirements. Riders, such as critical illnesses, accidental death, and maturity benefit, may be added to your insurance plan to get additional benefits, and insurance premiums can be customised to meet your budget. Not only this, but you can also choose from the different payout options available.

Life Insurance Is an Invitation for Excessive Paperwork

Long gone are the days when you had to maintain bulky files for each policy you had. With technological advancements and the digital revolution, the entire process of applying, paying premiums, and receiving payouts of an insurance policy has become easier and hassle-free. With just a few clicks on your computer or smartphone, you can now evaluate several plans, check out your payment status, buy policy online, and even make life premium payments online. This makes purchasing life insurance coverage simple, convenient, and fast.

My Life Insurance Plan Must Be Double My Annual Wage

Though it is ideal to have insurance that is double or beyond your annual income, there is no standard or golden rule for the same. You must take into consideration your individual circumstances to determine the quantity of life insurance required. From paying off debts and supporting your family for several years to undertaking their medical, education, and other expenses, you have multiple financial responsibilities to take care of. Therefore, you should do the math as per your requirement to establish the exact amount of insurance that needs to be acquired.

These are just a few of the most common misconceptions about life insurance plans. The idea is to include life insurance in your budget unless you have sufficient assets to meet your family’s needs after you pass away. It is recommended that you buy life insurance online while keeping all of the considerations above in mind. People may buy or avoid these plans without thoroughly understanding their features, terms, and restrictions. It’s easier to remain on top of things if you know what you’re getting into! Now that you’ve refuted the myths, you’re ready to make an informed decision and secure your and your loved one’s future.

- A Consumer Education Initiative series by Kotak Life

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