Life Insurance Myths and Facts

Life Insurance Myths and Facts

Dear Friends welcome to the Insurance Training Series. Today our Topic is “What is Life Insurance Myths and Facts”. So, continue to our today’s lesson. Certainly, you might have listened a number of perceptions about life insurance but these two Perceptions are very common.
Some Life Insurance Myths

1 – In order to get the Life Insurance benefits, I have to die. That’s not true. This means that if I want to have insurance benefits, I have to die. This perception is absolutely wrong. Certainly, this is not the actual fact. I know many friends and customers, who purchased Life Insurance earlier and now they are enjoying the life insurance benefits.
2 – It might double your money in 5 years. Certainly, this is not a true myth. This perception is not true again; your money will not double in 5 years.

What is the fact about life insurance?

1 – Life Insurance Policy is a long-term Protection cum Savings Plan.
2 – It provides financial security and peace of mind.

Life Insurance Myths and Facts Example

Imagine for a moment that you are traveling on a highway with your family. And you are driving a car of your own choice which provides you peace of mind. Imagine for a moment if I take a few things out of your car. Do you think, can you drive your car with the same peace of mind? I do not think so. Similarly, if you have a protection cum saving plan (Life Insurance), you will certainly have peace of mind. But if you do not have one, you may NOT.

Need for Life Insurance – Age Lifeline

Let’s see when we need life insurance. What does our mindset think? When we realize about Protection and Savings and which age we need maximum protection? So, Please carefully read the below chart to understand,

Dear Friends, There is a dilemma about saving and protection as well.

Saving Dilemma

It is easy to put aside funds when you are younger and your liabilities are less. But at that time, we normally don’t think about it.

Protection Dilemma

Life Insurance Myths and Facts. We want protection when the age becomes high and the cost of protection increases. So, I will give you an example mentioned below.
At the age of 18, Mr. Ali started saving Rupees Fifteen Thousands (15,000) per quarter (Every 3 Months) as an Insurance Premium or Rupees Sixty thousand (60,000) annually for 20 years. So, a total of 1.2 million (1,200,000) paid in 20 years / paying till the age of 38 years.

So, At the age of 85 years @ a growth rate of 10% per annum; your protection / saving will be close to One Hundred Ten Million Rupees (11 crore). And at the age of 85 years @ a growth rate of 12% per annum; your protection / saving will be close to Three Hundred and Thirty Million Rupees (33 crore).

So, the earlier you will start, the better it is. You save a little bit every month and get back a lot more when you really need it the most. During this period, if you want to withdraw some money, you also can. After 10 years, if you stop your Annual Premium Payment, you can and chances are that your savings and protection will keep growing.

Watch the Life Insurance Myths and Facts Training Video in Hindi / Urdu

Conclusion Life Insurance Myths and Facts:

So, Life Insurance is not a short-term Protection and Savings Plan. Also, it cannot double your money in a short time. If someone says this, it’s a lie. Life Insurance is a long-term protection cum saving plan. It helps you the most when you need the protection the most. Life Insurance helps you start your savings as early as you are 18 Years old.

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