If financially protecting your family’s future is your priority, then a life insurance policy is one of the preferred ways to do it. So, what is life insurance? At the core of it, it is a contract between an insurance provider and an individual. And according to the contract, the insurance provider provides a life cover of a predetermined sum of money to the individual for a specified period of time.
If the said individual dies within the specified period of time, the insurance provider will pay the predetermined sum of money to the deceased’s nominees. And in exchange for receiving this life cover, the individual is supposed to make payments regularly in the form of premiums to the insurance provider.
Decoding the Life Insurance Myths?
Despite being a simple concept to comprehend, there are several misconceptions about life insurance floating around, which tend to hold people back from investing in them. In this article, we’re going to be debunking some of the most popular myths surrounding life insurance. Here’s a few of them.
1. Life insurance is expensive
This is one of the biggest misconceptions about life insurance that people tend to believe in. Contrary to popular opinion, life insurance is not very expensive if you choose to purchase it when you’re young. The life insurance premiums only start to get expensive as you age. In fact, pure term insurance, which is a type of life insurance, is extremely cost effective and offers high coverage for affordable premiums.
2. Life insurance can only be purchased offline or through an agent
Even with all the technological advancements of this age, there are many individuals who still believe that life insurance can only be purchased offline or through an agent. This, however, is simply not true.
You can purchase life insurance plans online by simply visiting the website of the insurance service provider, filling in the appropriate application, and making the premium payment online. In fact, some insurers even quote a lower premium figure for online insurance plans as well.
3. Life insurance claims are frequently rejected
This again, is one of many life insurance myths that are simply untrue. As long as the cause of death of the policyholder is covered under a life insurance plan’s terms and conditions, and there is no valid reason to reject a claim, the claim will be accepted.
There may be some common reasons for a claim to get rejected. Some of them are - if there’s a mistake or omission when it comes to filing the claim application and its relevant documents, the claim may be rejected. However, if there’s no mistake or omission while filing the insurance claim papers, it will be accepted and the funds be disbursed to you, if any material facts have been hidden at the time of taking the policy, then the claim may get rejected etc.