Life insurance is a smart investment option, yet many myths and misconceptions often prevent people from buying it. In reality, it provides a financial safety net for your family in the event of your untimely death. It ensures you won’t face a shortage of funds when you need financial aid for your children’s education, marriage, and retirement. Moreover, it can become a stable source of income if an accident or ailment leads to financial trouble.

By giving heed to myths and misconceptions, you may miss out on the valuable coverage that life insurance brings with it. These myths prevent you from buying a life insurance policy that can guarantee securing your family’s future. Here, we have debunked the top 8 myths surrounding life insurance for those seeking peace of mind. Let’s dig in!

Top 8 Life Insurance Myths Life Insurance Policy Debunked.

Understand what is life insurance in the true sense by getting clarification on the myths that prevent you from buying it. Take a look:

• Myth #1: Life Insurance Policy Is Expensive:
  
  Let’s Debunk It: Life insurance is a vital contingency plan that can protect your family’s interests in an unfortunate event. One type of life insurance plan, the Term Plan, is the cheapest way to provide high coverage at a low cost. It provides financial coverage to dependents after the insured person’s death within the policy tenure.
  
  Other types of Life Insurance Plans include endowment, money-back, child insurance plans, etc., which could be slightly more expensive than term insurance as they come with maturity benefits.
  
  Tip: Buy insurance plans at a younger age to get more coverage at a much lower premium, as premiums of life insurance plans do not increase once the policy is issued.

• Myth #2: The Policy That My Employer Has Provided Me Is Enough
  
  Let’s Debunk It: An important part of understanding what is life insurance, is to know how much coverage is enough. Employer policies may not be able to provide you with financial coverage for all eventualities. Their scope is limited and may come with only a death benefit.
  
  Also, such life insurance covers are usually available only for the time till you are with that particular employer. The benefits will not be available once you quit the company or retire. Moreover, your employer can cancel or reduce the benefits of your insurance in case the company faces financial upheavals.
  
  Tip: Supplement your employer-provided policy with an additional insurance policy that can offer you a contingency financial plan. This should provide the required monetary support to your dependents in case you are no longer around. 

• Myth #3: Single, Healthy, and Fit Do Not Need Insurance Policy:
  
  Let’s Debunk It: Even if you are single, healthy, and fit today, you can’t predict what is around the corner. It is better to secure your dependents’ future than to leave them financially bereft in case of your untimely death.
  
  The major advantage of buying an insurance plan at a young age is that you can buy more coverage at low premium prices. Moreover, if you have some outstanding debts, such as a personal loan or student loan, the right coverage can ensure that the burden doesn’t fall on your loved ones.
  
  Tip: If you opt for your life insurance plan when you are single and healthy, you would be able to get the benefit of locking a lower premium as well, and your chances of getting the policy issued are much higher.

• Myth #4: The Main Purpose of Life Insurance Policy Purchase is Tax Saving
  
  Let’s Debunk It: It is true that you can get tax exemption benefits on your life insurance premiums under various sections of the Income Tax Act, such as Sections 80C, 80D and 10(10D).
  
  However, tax saving is not the main purpose of buying an insurance plan. The aim of life insurance policies is to provide your family with financial support when you are not around. However, you can choose other kinds of life insurance policies to meet your crucial financial goals through your living years.
  
  The tax advantage is an additional benefit and thus should not be the main reason for buying the plan, else the entire purpose of the plan gets defeated.

• Myth #5: Homemakers Don’t Need Life Insurance Policies:
  
  Let’s Debunk It: This is a wrong notion that only bread earners require life insurance policies to secure their children’s or parents’ future. Even homemakers need a life insurance policy. They are also prone to become the victim of any accident or life-threatening diseases. In their absence, you can require financial help to manage all the expenses of the things and services that they provide. 

• Myth #6 It Is Risky to Purchase Policy Online:
  
  Let’s Debunk It: Whether you buy an insurance policy offline or online, you should always exercise caution. It is highly recommended to choose a reliable insurance provider whose claim settlement ratio is high. You should choose an insurance plan where the policy inclusions, as well as exclusions, are easy to understand. Once you have chosen a reliable insurer, you can buy the policy irrespective of any mode.
  
  Tip: Exploring your options and comparing them is easier online. If lucky, you can get some premium discount offers on choosing the online mode.

Conclusion

A life insurance policy offers you peace of mind in this uncertain world. It not only safeguards your family’s future in your absence but also aids you in attaining financial goals. If you are finding it overwhelming, you can consult a good insurance advisor to understand the exclusions and inclusions of your policy. A little help you in choosing the right plan can go a long way.