Many people find yourself shopping for ULIPs or endowment plans, mistakenly believing they’re buying insurance coverage when, in actuality, these are funding merchandise. Moreover, individuals usually discover themselves underinsured or overinsured by choosing a ₹1-crore insurance coverage cowl quantity with out correct evaluation of their wants.
In abstract, there’s plenty of misinformation and mis-selling, even amongst professionals throughout the finance trade. Upstox goals to assist people buy insurance coverage the fitting approach, as insurance coverage wants are distinctive to every particular person and there’s no ‘one-size-fits-all’ answer.
Some widespread myths
Listed below are a few of the widespread myths that Upstox seems to be to debunk, so as to empower individuals with correct info, wanted to make knowledgeable selections about their monetary safety and insurance coverage purchases.
● You want life insurance coverage for so long as you reside: We’ve observed cases the place people take cowl until 85. which isn’t perfect, particularly if their dependents have began incomes by the point their dad and mom are of their eighties, and don’t want the monetary help.
● People who smoke should pay extra premiums: Whereas smoking does enhance the premium quantity, in case you give up smoking for over a yr, your premiums may be equal to a non-smoker’s as nicely.
● Hiding well being points/smoking will scale back your premium: Each insurance coverage has a ready interval after which you change into eligible to profit from it. So, in case you cover a well being challenge to cut back the premiums and the issue intensifies, you received’t be capable to use the advantages of your insurance coverage.
● If you’re younger and wholesome, insurance coverage is just not a prerequisite: This can be a very harmful ideology to have. Life as we all know this can be very unpredictable and it’s at all times a good suggestion to have ample monetary backing. Insurance coverage acts as a fallback plan for children too, in case of economic setbacks. The earlier you buy insurance coverage, the decrease your insurance coverage premium quantity is, and also you get actually long-term safety.
● Buying insurance coverage places a dent in your pocket: Insurance coverage is just not a alternative, it’s a necessity. And the earlier you purchase it, the inexpensive it will likely be. Additionally, don’t go for sophisticated insurance coverage merchandise resembling ULIPs or endowment plans which are usually mis-sold as Life Insurance coverage. In the event you go for a easy Time period Life Insurance coverage Plan, you don’t actually need to shell out an enormous quantity out of your pocket.
● Your employer’s insurance coverage protection is enough: Relying solely in your employer’s insurance coverage plan could present commonplace protection, however it’s important to recognise its limitations as nicely. Extra insurance coverage, other than employer’s insurance coverage, ensures extra complete protection. Employer-provided insurance coverage may not cowl all situations and could also be inadequate, particularly in a scenario the place you resolve to depart your job. Therefore, securing further protection can supply a extra strong and personalised answer, offering extra safety, and safeguarding your monetary well-being.
● Life insurance coverage is an funding software: No, it’s not. It’s extra of a security web to avoid wasting your loved ones and dependents from any mishap or emergency you could encounter in life.
Whereas these are a few of the extra generally heard misconceptions about insurance coverage, there are numerous extra myths which are prevalent out there that deter people from shopping for insurance coverage. This can be very vital to do not forget that insurance coverage is supposed to make life simpler, present safety and backing, and safeguard your future.
The author is Co-founder, Upstox
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