What are Life Insurance Plans?
Life Insurance plans are a method of ensuring financial security for you and your family. They act as a backup in case of unfortunate events such as untimely death, accident or illness takes place. They also help to build wealth so, that you can plan on buying a new house, or provide for educational or marriage expenses. They are an “investment tool” and also help in planning your retirement.
The 5 Common Misconceptions
- Too young to start investing in life insurance policies:
Age is not a bar and nobody is too young to begin evaluating and investing in life insurance. Sudden unfortunate occurrences do take place. Insurance is one of the ways of handling them. Also, premiums increase as age increases. Thus it is better and less expensive to start investing as early.
- Many of them believe that the insurance needs are same for everybody.
In reality, there are various types of insurance policies. These differ as the needs of each individual also differ. For instance, a single individual has different needs as compared to a married individual. For the former, educational and employment needs might be the most important. While for the latter, the educational expenses and marriage requirements of the children, might take precedence. The products offered by insurance companies accommodate the specific needs and preferences of each individual.
- Life Insurance is expensive:
As life insurance offers financial protection, it is a comparatively less expensive form of investment. For convenience, life insurance companies in India, provides options for paying the premiums on a monthly, quarterly or annual basis. In addition, as there is no agent in online plans, these policies are even cheaper.
- It is a product that is useful only for saving taxes:
This is not true. The primary advantage of life insurance is financial protection. Being able to save taxes through them is an additional advantage. Life Insurance protects you and your family in emergency situations or unforeseen events.
- Life Insurance Policies are complicated and often difficult to understand:
It is true that there are many types of life insurance in India, but each caters to a specific requirement. For this reason, evaluating your own requirements first and then reaching the different policies is the best option. Insurance agents can always clear up any further doubts and clarifications you may have.
- Start investing at an early age to gain the maximum value from your life insurance plans.
- Ensure that you make a list of all your requirements and preferences before looking into and investing in insurance policies.
- Look for online plans, but do invest in a life insurance policy as it ensures financial protection.
- Look at insurance policies as a means of protecting you and your family in case of emergencies or unforeseen events.
- Choose only those policies that specifically cater to your needs.
- If you have any questions, then ask an insurance agent to help you.
Thus, all life insurance in India covers all your needs …