Myths About Life Insurance Busted
Do you consider Life Insurance a liability or just any other expense? Do you always find reasons to not to buy it? Although it is not a legal requirement like vehicle insurance but it is absolutely an extremely useful product for the well being of your loved ones when you are not there.
No matter how important a Life Insurance is, people find many reasons to corner it out. But what if we tell you those reasons are actually myths and do not contain any fact? Here we are revealing the truth behind five most common myths about Life Insurance to help you make the right decision:
Myth #1: Only Older People Need Life Insurance
People between 20-30 age group, don’t give much priority to having a life cover. They feel that it makes more sense when you are near your retirement. This is the biggest myth among the youth! The reality is – if you have dependents, no matter how young you are, you must have a Life Insurance. It will protect them financially in case anything worst happens to you. In fact, if you opt for it at a younger age, the premiums for Life Insurance will be much cheaper.
Myth #2: Payouts of Life Insurance Involve Heavy Tax
Have you been told that a big portion of your sum assured will go in tax? This isn’t true! Here’s good news – Life Insurance payouts do not come under income or capital gains tax. Although at the time of your demise, a payout may involve inheritance tax over a certain limit (depending on your total net worth at that time), you can avoid this if you have the insurance policy written in trust in your beneficiaries’ name.
Myth #3: You Don’t Need It Because You’ve Already Bought Mortgage Insurance & Critical Illness Cover
There is a lot of difference between Mortgage Insurance (which provides protection for your Mortgage), Critical Illness Cover (which provides protection against critical illness) and Life Insurance (which provides a secure future to your family if you are not there). The first two policies are invaluable if the insured is unable to work. They can only be helpful in covering your medical bills and other living costs until you are able to work again. Having a Life Insurance can help you leave a lump sum (sum assured) to your family when you die so that they can manage their daily expenses without any hurdle.
Myth #4: Buying a Life Insurance is Unaffordable
If you think Life Insurance premiums are too expensive, you are living under a myth. Policies can be customized as per your affordability and needs. You can Buy a Life Insurance at Low Monthly Premiums , as little as you spend on one visit to your favorite restaurant.
Also Read: Do You Care for Your Family?
Life Insurance can be a boon in disguise for your loved ones when you are not with them anymore. Opt for a policy that assures maximum coverage as per your budget and make sure you start investing in Life Insurance at an early stage of your career.
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