Life Insurance – Yes/No? Think about it
“People often give several excuses for not buying a life insurance policy as they think it is a waste of money.”
This is human psychology, wherein, at a young age, we tend to believe that everything is under our control, and we will efficiently manage things without any life insurance. Although it is said that age is just a number, but it does come with a lot of health issues as well as other liabilities. And then when we finally realise that we must opt for an insurance plan, it gets too late to secure our family’s future in case of any mishap.
There are plenty of excuses youngsters give for not investing in a life insurance policy. Let us discuss all of them in-depth and counter it with the increasing need for insurance in today’s dynamic world:
- I’m Unmarried: This is one of the most prominent excuses youngsters generally have for not buying life insurance. They usually have this misconception that if they are not married, life insurance is not required. Therefore, why to waste money on it, instead it’s better to invest funds somewhere else to get better returns. It is perhaps the biggest mistake young people make. While investing in other avenues is also good but delaying the buying decision of life insurance policy online could have effects in their future. And when they realise that this is the right time to buy then either the premium amounts are too high, or they are burdened up with other liabilities. Well, it is great that you are young, healthy and hearty. But you should not underestimate the high chances of uncertainties. Thus, it is better to be prepared and buy a life insurance policy online to safeguard your loved ones from facing any kind of financial strain during such challenging times. If you purchase life insurance early in your life, then you can enjoy the lowest premiums even after your marriage that will cover your spouse from day one of your wedding.
- I’m Physically Fit: Life insurance is specially designed to protect your family financially in your absence. It ensures that your family doesn’t have to go to any financial difficulties, even in your absence. Few people mix life insurance with health insurance and think that as they are healthy and physically fit so, they don’t require it as of now. This approach towards life insurance is incorrect because you may be fit and fine as of now, but you can’t predict the future and say it with the guarantee that you will always be in good health. Therefore, investing in a life insurance policy online is a wise decision for a secure future.
- I’m secure under the Group Mediclaim Policy provided by my Organisation: These days, organisations are becoming employee-centric, and they try to give each and every possible facility to their employees under the employee wellbeing department. One of the most common benefits which almost every organisation offers is the Group Mediclaim Policy. It does provide death benefits, but the amount is considerably less as compared to an individual life insurance policy. In Group Mediclaim Policy, the coverage amount doesn’t exceed 1-4 times of your annual salary, and that also only covers you till the time you are an active employee. However, a personal life insurance policy offers great death benefits to policyholders. You even get the option to choose the coverage amount that you find sufficient for your family in case of your untimely demise. So, whether you have a Group Mediclaim policy or not, but you should have an individual life insurance policy.
- Enough Financial Reserve: Few people think that they do not need life insurance because they have an ample amount of savings, and even if something happens with them, this reserve will allow their family to spend life comfortably. This isn’t 100 percent accurate as nobody keeps hard cash these days as saving because it doesn’t offer the return on investment. People rather like to invest in real estate, shares, debentures or any other source of investment. So in case of a sudden mishap, these sources of income will not fulfil the immediate requirement of money. Here life insurance can help you with instant cash payout that too without any tax deductions, as per Income Tax Act 1961. Even the insurance coverage amount under death benefit of life insurance policy is also totally tax-free under section 10 (D) of the Income Tax.
As we are aware, that Term Insurance policy is a form of life insurance which provides the lowest premiums against a substantial life coverage amount. But the premium amount increases with age and health issues, so it is always advised to secure your family and loved ones as soon as possible to avoid the last-minute hassle. You can anytime visit BimaKaro to get the best quotes on various term insurance policies from the top insurers of India and get the right policy for yourself.