There are several myths
shrouded around insurance that it is difficult to peel off these myths even
today and people often shy away from insurance because of the misconceptions
and prejudices that are either non-existent or may once have plagued insurance
field but not in the present digital world.
wants to think about dying or how it will affect your loved ones, but a policy
could mean that no one else ends up encumbered with your debt,” Feldman says.
understand that insurance may not be the most exciting financial topic and few
people who have all their financial needs sorted out may not need insurance,
but this post is to make sure that your decision on insurance is a
well-informed one and not based off a myth about insurance. Below are some of
the common myths about insurance:
single as pringle. Why would I need insurance?
If you’re single and don’t have any mortgages to
leave unpaid if the worst happens to you, you probably won’t need insurance.
Even if that is the case, putting together a simple funeral may cost a lot,
given that even a coffin costs anywhere from 3,000 to 30,000 rupees. You may
also want to consider the credit cards debts and unsecured loans that might
fall on your next of kin’s shoulders if you’re not around to pay them back. Besides,
it may be wise to purchase insurance when you’re young, when it’s easy and
affordable, rather than getting insured when you’re old when it becomes pricier
and sometimes uninsurable due to medical issues.
Expensive is a relative term. What might be
affordable to you, can be expensive to many. So, depending upon your income,
you are sure to find an affordable insurance from the numerous options
available. There’s no one-size-fits-all insurance. You can skim through the dozens
of insurances available and choose the one that cater to your needs at
One could easily get baffled at the sheer number of
options available. One might not have the time and expertise to read through
all the insurance ever available and choose the perfect one. Instead you can
opt for platforms such as CoverNest which makes your job easy and gives you the best
options for you.
difficult to claim insurance
Unless you’re making a fraudulent claim, you’ve
nothing to worry about when it comes to insurance claims.
Old people won’t need
The primary purpose of life insurance is to replace the
future income of a primary breadwinner. Two groups most likely to need it are
middle-aged couples saving for retirement and parents of minor children -
Probability of dying is even greater when you’re old and insurance
is almost vital when you’re an aging primary breadwinner of the family. Also,
with increase in age, you’re more susceptible to health problems.
I am a stay-at-home parent.
Why would I need insurance?
parent plays multiple role at home, serving as housekeeping, cook, laundry and
grocery shopping – in short functioning as CEO at home. It can be very easy to
overlook the financial contributions of a work-at-home spouse—that is, until
the person is gone. If you or your
spouse decides to remain at home to take care for your children, don't forget
that the contribution of the stay-at-home spouse can equal tens of thousands of
dollars a year. The loss of value that accompanies upon losing a parent is
irrevocable, but the financial hardship that entails the loss can be prevented
by purchasing insurance.
Investing is better than
Some of the benefits of getting insured over
investing are: you get a tax deferred growth; you can borrow against the cash
value to buy a house or marry off your kids, without paying taxes; you will be
covered in case you fall terminally ill; you will be covered till your death or
as long as you pay the premiums.
Insurance coverage at work
is enough. Don’t need no more!
You may not be satisfied with the employment coverage due to
many reasons: the plan may not cover your spouse enough, you may have had an
increment which doesn’t carry on with the insurance or you may want a much
higher or a cheaper insurance than the one that is being currently provided.
Most importantly, it is wiser to go for an individual insurance over employment
coverage as you’ll lose the insurance once you employment situation