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Adequate risk cover and suitable insurance product is the very important aspect of the financial planning. Life insurance is a contract between an insured and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the "benefits") upon the death of the insured person. Life insurance has many terminologies that must be considered carefully in order to have the best life insurance.
Myth 1: Go for ‘trusted’ names
No additional benefits are there with trusted names. Insurance Companies are bad investment managers. You should go to insurance companies for insurance only means for term plans not for investment plans.
If you want to buy the term insurance you can go for the inexpensive insurance plan, may not offered by a trusted insurance company.
Compare term life insurance plans and pick the best one from any of the company registered with IRDA.
Myth 2: I don’t have dependents, so don’t need of Insurance Cover
Life insurance provides the financial coverage to dependents if some mishappening occurs. But if I am single why should I buy life insurance product? When your policy matures and pays you back the sum assured, you can use this amount during your retirement days besides enjoying the tax benefit.
Myth 3: An investment cum insurance plan is best
Insurance-cum-investment plans are disastrous for you. Such plans generally carry high commissions for insurance agents so they recommended them very strongly. Such products have high charges and lack of transparency. Use your own brain you can compare the insurance plans yourself than why need insurance agent. In market there are smart online comparison platform where you can compare the offering of all insurance companies under the one roof.
Myth 4: Insurance Agent is my financial adviser
Many agents are poorly trained about the insurance product they are selling. They simply focus on to the product having the high commissions instead of products which are more relevant for you. Nowadays, most of the insurance plans are available online. You can easily explore the online channel for analysis, comparison and even for buying the insurance product.
Myth 5: Life insurance is the best way to save Tax
Primary motive of buying the life insurance shouldn’t be the tax saving, However tax saving are the additional benefits of the term life insurance plans. One should consider insurance just as a risk mitigating financial instrument tool, tax saving is just a topping on the cake and not the primary motive of buying insurance.
Above are the common misconceptions of life insurance plans. If you have further queries related with the insurance products call us on 1860-266-1226 or write a email at firstname.lastname@example.org
You can also compare and buy the offering of different insurance companies by using the comprehensive online insurance platform www.bajajcapitalinsurance.com