Insurance is only meant for the wage earner of the family:
Every family member needs insurance. The need for insurance may differ from
person to person but it is important to gauge and analyse this need. It is not
just the chief wage-earner’s prerogative to insure himself.
Insurance is mainly
for tax saving: Saving tax is just an added advantage of insurance.
Governments offer Best Tax Saving Plan benefits on
insurance plans so that more and more people feel encouraged to insure
themselves. The main objective of insurance is to provide financial protection
to you and your family and to build an assured corpus for your future needs.
Benefits of insurance
can be reaped only after death: Insurance provides financial protection to
you and your family. One of the main objectives of taking insurance is to
provide financial support to your family in case you are not around, as in case
of term insurance. But that is not the only objective. Insurance helps you to
build a corpus for yourself and your dear ones. It provides you with
comfortable retired life and even takes care of your needs at various life
stages.
Group insurance
provided by my employer is adequate: Your group insurance might be adequate
but what if you change the job? Once you change the job your group insurance
will cease and you will be left with no cover till your new employer gets you
covered. So it is always advisable to take insurance other than the insurance
offered by your employer. Also the insurance provided by your employer may not
be adequate to provide complete financial protection to your family.
Young people do not
need life insurance: We live with a common notion that people die when they
are old. But knowing about life’s uncertainties, it is best to take insurance
early in life. Having the risk of death covered is definitely better than
leaving dependents financially unstable in case of an untimely death. Besides,
it is useful to take benefit of the lower premium rates offered to the young.
The older you grow; buying insurance becomes tougher due to higher premium
rates or refusal because of ill-health.
Source: http://blog.hdfclife.com/did-you-know/insurance-myths
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