Life Insurance Myths

Life Insurance Myths

It is essential to have life insurance as it provides a cover to not only the policyholder but also their kin. However, there is one area that many people still do not comprehend and that is the myths around life insurance. To ensure that you make the right decisions based on fact and not myths, we look at space of the common life insurance myths.

The most prevalent life insurance misconceptions are as follows:

Myth 1 – Insurance Is Meant To Save Taxes

Tax savings are only one additional benefit of having an insurance policy. Building a secured corpus for your future requirements and safeguarding you and your family are the two basic goals of insurance.

Myth 2 – Only After My Death Will Insurance Pay Out

You and your family have insurance plans for protection. A key reason for insurance is to provide financial support if you pass away. Additionally, it covers long-term medical costs and helps build wealth for a secure retirement.

Myth 3 – Group Insurance Is Sufficient

You may have enough insurance via your organisation, but what happens if you change jobs? Your group insurance will terminate if you change jobs, and you will not receive any benefits. Therefore, it is always a good idea to have insurance other than what your company offers.

Myth 4 – Only Family’s Sole Provider Requires Insurance

Every member of the household requires insurance. Although your work profile may alter, it does not completely remove the requirement for insurance.

Myth 5 – Since I am Single And Have No Dependents, I Don’t Require Insurance

Health and retirement protection takes precedence over nominee coverage in life insurance. A policy tailored to your medical and post-career needs proves far more essential than one focused solely on beneficiaries.

Myth 6 –  Only Those With Ample Resources May Afford Life Insurance

Modern insurance policies like those from Aditya Birla Capital provide broad coverage at affordable costs. Online research can be used to find personalised programs that fit any budget. As your income rises, you can add more coverage to your initial modest sum assured. An alternative is a term life insurance policy. Term insurance usually offers a high assured amount at a low price.

Myth 7: Life Insurance Is Not Available To Older Individuals

Even elderly folks can obtain policies from several companies. Seniors who have retirement plans can maintain their financial independence even after their pay ends. They can begin receiving their pension right away by making a lump sum payment into an immediate annuity plan. After they pass away, their spouse will still be eligible to get the pension. Additionally, whole life insurance products are available for purchase by senior individuals, providing lifetime coverage. When they are gone, their loved ones will get death benefits. As a result, they may guarantee the continuous financial security of their spouse or family.


Knowing about life insurance is key to your financial future. First, distinguish between facts and misconceptions about life insurance. This helps you pick the best policy from the best brands for you and your family. Do not let false beliefs mislead you. Instead, educate yourself, seek expert advice, and make informed choices for peace of mind.