Myth Busters: I don’t need Life Insurance
Being young is often closely associated with being carefree. However, there is a difference between being carefree and being careless. While it is important to look at life positively, you can quickly get lost in the difference between a positive attitude and naivety. Many young working professions seem to go in the direction of being careless and naïve. The perfect example of this is the growing number of people that do not buy life insurance. The attitude of ‘everything always works out’ often overpowers their need to secure themselves financially. Along with that, there is also the notion that life insurance is something for older individuals to buy. Some other myths that make people think they don’t need life insurance are as follows:
I have corporate insurance
As the name suggests, corporate insurance is the policy offered by a corporation to you. Many employers in the country offer coverage to their employees. This coverage is a part of the many benefits of life insurance that companies sometimes offer as a way of valuing their employees.
The life insurance policy offered by an employer is quite often seen by many as a superhero in a cape. Many assume that if they have the corporate policy, they do not need to worry about anything. Hence, the policy becomes a reason to not put any effort to ensure that you are truly secured. However, there is an economic disadvantage that corporate insurance can put you in. Not a lot of people catch that corporate insurance either offers your annual salary or 4 times that sum as the cover amount. While this can depend on the company you work for, that is often the highest amount of protection you will have. This amount is likely to fall short when needed. Furthermore, the biggest disadvantage that corporate insurance has is that it is subject to your employment in the company. Hence, if you part ways with your organization, you will lose all the coverage that you had. Hence, it is better to buy a life insurance policy on your own.
I’m a stay-at-home parent
The notion that many people have is that life insurance should only be bought by someone who is a working individual. However, that is far from the truth. The idea behind this notion is that the breadwinner of the family is the most valuable person in the family. Even if you are not an earning member of the family, you have an important role that cannot be fulfilled easily. Many believe that being a stay-at-home parent is about enjoying the luxuries of domestic life. Contrary to that, it is about making sure that your family functions perfectly, which involves money management as well. Home maintenance, childcare, daily transportation, and household chores are only a few of the things that a stay-at-home parent is responsible for. Hence, a loss of such a person is a grave one. A life insurance policy can act as a relief during a traumatic time for your family.
I’m perfectly healthy
People often associate good health with longevity. While it is true that being healthy increases your life expectancy, life is extremely unpredictable. Life insurance is a product that financially prepares you for possibilities. While you may feel that being healthy means that you will live for a long time, there is no way you can guarantee it.
Reading about increasing lifestyle diseases and the growing number of accidents seem like mere words. But when you face them yourself, you realize, these threats are real, and you need to be prepared for them. The various types of life insurance plans available in India makes sure that if you suddenly die due to an illness or an accident, your beneficiaries are financially secured.
The basic truth that life is unpredictable escapes many people, whether they are young or old. Life insurance is an ingenious tool that offers protection and growth at the same time. Hence, you should take the money you already make and ensure that your life is covered. This move of buying a life insurance policy will most definitely reap rewards later.