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    8 Life Insurance Myths That Need to be Debunked/ Busted

    Last Updated On 09-09-2022

    Life insurance secures the certainties of life – a regular income source, a comfortable lifestyle, and the fulfilment of the dreams and goals of your loved ones. However, despite the many benefits of a life insurance policy, many potential buyers do not buy life insurance because of the myths revolving around it. Debunking these myths is crucial to making an unbiased and informed decision about whether you need life insurance or not.

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    8 Life Insurance Myths Debunked

    Here are 8 life insurance myths debunked.

    • Life insurance is expensive and a waste.

      A life insurance policy only charges for what it is worth to the buyer, so it is never a waste. Moreover, the cost of life insurance depends on the type of life insurance policy and the number of features chosen. For instance, basic term life insurance costs less but offers a high death benefit. On the other hand, endowment insurance or whole life insurance costs more but offers multiple advantages at once.

    • A life insurance policy only covers death.

      Only term life insurance covers the eventuality of death and provides a death benefit to the family members of the policyholder. However, depending on the type of life insurance policy, you can get many other benefits and coverages in the same insurance policy. Life insurance, like whole life insurance or endowment insurance, for instance, provides the triple benefits of savings, insurance, and wealth creation, among other additional protection.

    • The life insurance policy provided by an employer is enough.

      While this might be true, a life insurance policy provided by an employer only lasts till you are an employee at their workplace. Therefore, most employer-offered life insurance plans expire as soon as you leave the company. Moreover, the coverage they offer is seldom enough to cover your growing needs.

    • Insurance companies deny life insurance claims all the time.

      Life insurance companies only deny life insurance claims for a valid reason. So, for instance, if you stop paying your premiums and your life insurance policy expires, the insurer will not let you claim the benefits under it. Or if you lied, misrepresented, or hid a fact or an important detail from the insurer and they find it out later, your life insurance policy can get denied.

    • It is risky to buy a life insurance policy online.

      Whether you buy a life insurance policy online or offline, all that matters is how trustworthy the insurer is. Once you know that the brand name of the insurer and their claim settlement ratio is high, you can go on to purchase insurance from them irrespective of the mode. In fact, most insurers have shifted their services online and offer incentives and discounts to buyers for online purchases.

    • Homemakers do not need life insurance.

      While life insurance policies get marketed to the sole or co-income earners of a family to secure their loved ones in their absence, it is also for those spouses who are homemakers. Covering them is an insurable risk. We often believe that homemakers do not add any financial value to the house, but in their absence, cooking, cleaning, childcare, and running the household, in general, will require qualified help, which in turn requires finances.

    • Older people cannot buy life insurance.

      There is a myth that life insurance is only valuable when you are young and senior citizens cannot buy it. However, apart from term life insurance, there are many other best life insurance policies older citizens can benefit from, like retirement insurance, whole life insurance, annuity plans, etc. Senior citizens might have to pay extra premiums, but the benefits provided in exchange are worth it.

    • You have all the time in the world to buy life insurance.

    • You might be young, healthy, and disease-free, so you might think you don't need life insurance. But life insurance is a product that you cannot buy when you exactly need it; you have to buy it well before the time of need arises. Therefore, it is best to be proactive about buying life insurance and getting it as early as possible. In fact, getting a life insurance policy when you are young is very affordable. 

    To Conclude

    Once you know the facts countering the myths floating around life insurance, it will be much easier to pick a life insurance policy suited to your requirements.

    Disclaimer:

    The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

    PNB MetLife India Insurance Company Limited
    Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
    IRDAI Registration number 117 | CIN U66010KA2001PLC028883
    For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale.
    Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time. Please consult your tax consultant for more details.
    Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
    The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
    Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.

    Beware of Spurious Phone Calls and Fictitious / Fraudulent Offers!
    IRDAI is not involved in activities like selling insurance policies, announcing bonus or investments of premium. Public receiving such phone calls are requested to lodge a police complaint.

    AD-F/2022-23/200

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    Disclaimer

    Collapsed Expanded

    As your trusted life insurance partner, PNB MetLife is with you amidst the current COVID-19 outbreak. Our policies also cover COVID-19 Claims. In case of a Death Claim, kindly submit the signed Claim Intimation Letter mentioning the policy number, brief of the insured event and other claim documents on the email mentioned herewith. Please write-in to us at claimshelpdesk@pnbmetlife.com or indiaservice@pnbmetlife.co.in. You can also call us on 1800-425-6969 for death claims intimations and for any queries on Monday - Saturday between 10:00 am - 7:00 pm.

    PNB MetLife Insurance, amongst the trusted Life Insurance companies in India, aims to provide a wide range of Life Insurance products that suits the needs of an individual at every stage of his life. Life Insurance Plans range from Term Life Insurance PlansTerm PlanProtection PlansLong Term Savings Plans , Retirement Plans & Child Education Plan.

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