Life insurance is the most common financial term heard by all. Ever wondered about the various doubts surrounding it? It’s time to clear some of them.
Should I buy a life insurance policy even if my employer has insured me in a group insurance scheme?
The group insurance scheme is valid only until you stick with the company. Once you leave the company you are no longer protected. Not a good idea, right? Also, the group insurance scheme may not exactly match your needs. Hence, it is wiser if you take your own life insurance apart from a group insurance scheme.
Can I buy multiple plans?
Of course yes, but the details of the earlier plans taken must be disclosed before taking any new plans. However, care must be taken that every insurance policy is adding to your protection, and not expenses. The total sum of the life cover of all your policies must be 10 times your annual income.
In case one of insurance claims gets rejected you can look up to your other insurance claims. This is the bright side of taking multiple insurance plans.
I am too young to buy insurance
You are never too young to start a good thing. Insurance will serve as a boon if you take it early in your life. As you grow older, the premium increases.
It is a misconception that single people with no one dependent on them do not require insurance. Being single does not mean you do not have health and post-retirement needs. There are insurance plans which cater to these needs as well.
If I live throughout my policy term, my money is wasted and hence, life insurance is wastage of money
Term insurance is the traditional form of life insurance. Most people hesitate to take it as it does not give any returns at the end of the term. However, the point to be noted is that term insurance is one of the most affordable life insurance plans. By paying modest amounts as premiums, you can ensure your family is protected against your untimely death. The fact that the monetary needs of your family is taken care of even after you pass away is a huge return indeed.
Life insurance companies don't pay the claim amount after death of the life insured
It would be incorrect if said that all insurance companies settle claims without any hitches. It is the responsibility of the insurance-taker to check the claim settlement ratio of the company before taking the insurance. Companies with excellent claim settlement ratio must be the first choice even though they charge a little higher premium. In case your insurance company is unable to settle your claim, you will be notified.
Term Insurance Plan help you shield your family from uncertainties in life due to financial losses in terms of loss of income that may dawn upon them in case of your untimely demise. Now many Insurance companies offer special online plans which are easy to apply for and also offer lower premiums due to absence of intermediate agents. One such online plan is HDFC Life Click 2 Protect Plus which provides a cover of Rs 1 Crore @ just Rs 18/day*.
*Premium amount of Rs. 535 is for Regular Pay monthly mode, Male, 25 years of age, non-tobacco user, 30 year policy term & under Income Option, exclusive of taxes. (Rs. 535/30 days= Rs. 18 per day appox.)
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Updated Date: Feb 12, 2016 11:56 AM