With all its technicalities and rules Life insurance can be a bit tricky to figure out. It’s more complicated than a savings account or a fixed deposit. Since it focuses on the rural area this makes it is a true nationwide insurance company. And through this article, you’ll come across 5 misconceptions surrounding life insurance companies that you need to know about.
- The first myth people tend to believe is the employer-sponsored life insurance is enough for them. At first glance, the insurance provided by the employer seems quite helpful. Nonetheless, it may not be enough to cover present and future liabilities. They come with fixed benefits and don’t allow you to add other benefits or riders. You won’t be able to transfer your coverage once you retire or move on from your job since you never owned it.
- People often do not go for insurances since they think their income is enough to cover all the expenses. You family gets used to a certain lifestyle as your income increases. In your absence in future, they’ll be needing money to cover the loss and complete the responsibilities such as EMI payments, any outstanding debt or your child’s education.
- The third myth: Only breadwinners need life insurance coverage. And this statement is complete nonsense. Especially when it comes to cleaning and daycare the cost of services provided by the homemaker is higher than you think. The expenses on the loss of a homemaker may compel you to regret not having life insurance.
- The fourth myth is people do not need to think about life insurance since they are young. Though it does not seem like an urgent decision when you’re young but buying a policy when you’re young is a sensible decision. The sooner you start, the better it is. When financial responsibilities will increase with the growth of your family having insurance will help you out. You can get protection at affordable rates if you buy a policy before your parents get older or you have children.
People believe setting a life insurance claim is very difficult. These companies exist to protect their customers and their reputation depends on that. You need not worry if you provide accurate information and keep your policy up to date. Your claim will be accepted. Provide accurate medical details, renew the policy regularly and disclose any other policies you hold for a smooth claims process.