#FinanceTip: 5 Insurance Myths Debunked
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Planning for Contingency like death and hospitalization also forms an important part of Financial Planning. Let us debunk a few insurance myths today so that you will be able to make better financial and investment decisions.

MYTH 1: LIFE INSURANCE IS A WASTE OF MONEY

Life insurance is bought to protect ourselves from the contingency of untimely death. Life insurance is an investment that is more of a safety mechanism; it is to provide financial security to the dependants.

MYTH 2: LIFE INSURANCE IS FOR SAVING TAXES

This could probably be a selling point for agents. But tax-saving is one of the many benefits life insurance offers. The main benefit is the provision of finances in case of the death of the policyholder.

MYTH 3: THE VERY YOUNG DON’T NEED LIFE INSURANCE

This is a wrong notion. Besides, it is smart to take benefit of the lower premium rates offered to the young. Also, you may find it difficult to take life insurance when you are old due to higher premium rates or being refused because of ill-health.

MYTH 4: IT’S BEST TO BUY A POLICY IN THE NAME OF A MINOR

This emotional sentiment selling point has helped many to sell insurance. Also, the premium paid on child policies may be much less than on a policy for an adult wanting the same coverage.

MYTH 5: LIFE, MEDICAL COVERS ARE PROVIDED BY EMPLOYERS

These covers are available only until you are in a particular company or till planned for retirement. Also, life insurance provided by employers may not adequately cover the living expenses of your family in case of your untimely death.

Having understood these myths, we are sure you would make insurance a very valuable and useful proposition for you.

Source: https://www.holisticinvestment.in/insurance-myths/
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