Despite efforts taken by Insurance Regulatory and Development Authority to correct the facts of life insurance, the majority of people still misunderstood this product, which is usually known as an investment, instead of protection. Policies are surrounded by various myths and hence, IRDA has taken major steps to contain the source of wrong details to customers. But, the impact still continues to distract the Indian buyer’s mind.
3 Myths about Buying Online Life Insurance –
Majority of Indians opt for online life insurance policies just to avail their Section 80C tax benefits. In fact, some people buy excess insurance or are under-covered. People skip the process of buying insurance as long as their tax limit has fulfilled.
You should understand that your life is more important than Section 80C. So, buy enough coverage for your life without just considering the tax benefits.
Generally, people avoid buying this insurance because they are not receiving anything in return. Customers are more worried about the return value of their premium payments over their own lives.
Online life insurance is more affordable as compared to unit-linked or whole life insurance. The person should buy a term plan online to solely cover his and his family’s life and the premium amount saved on other policies could be utilized towards investment in mutual funds.
One of the serious mistakes is to overlook the requirement to cover working spouse. A working spouse is considered as someone who brings money home and hence, doesn’t need life insurance India.
We all have human life value. All the responsibilities come on other spouses in case of breadwinner’s death. Therefore, enough coverage for the non-working and/or working spouse is required.