Every year, thousands of Indian families face heartbreak — not just from the loss of a loved one, but from the harsh financial aftermath that follows. The saddest part? Many of these families believed they were “safe.” They had heard about insurance, maybe even bought a policy… but they were misinformed.
Let’s break down the 5 most common insurance myths that cost people their peace of mind — and how to avoid them.
1. “I’m Young, I Don’t Need Insurance Yet.”
This is the myth that delays the smartest financial move.
Most people think life insurance is only for those who are old, married, or already unwell. But here’s the truth: life insurance is cheapest when you’re young and healthy.
A ₹1 crore term insurance plan for a 25-year-old might cost just ₹450–₹500 per month. Wait until you’re 40, and that same plan could cost twice as much. Wait until you’re diagnosed with something? You might not even qualify.
Starting early doesn’t just save money — it locks in your insurability.
2. “Insurance Means I’ll Get My Money Back.”
This myth is why many people end up with poor-value policies.
Insurance isn’t an investment. It’s protection. The job of insurance is to provide financial support if something happens to you — not to make you rich.
Yes, some policies offer “returns” or bonuses, but they also come with higher premiums and limited coverage.
If your goal is to grow money — look at mutual funds, PPF, or ELSS. But if your goal is to ensure your family doesn’t struggle without you, a term plan is the most honest, powerful option.
Think of insurance like a safety net, not a savings account.
3. “My Company Already Gives Me Insurance.”
Corporate life insurance is a nice bonus — but it’s not enough.
Most employer-provided covers are in the range of ₹3–₹5 lakh. If something happens to you, will that cover home loans, education, daily expenses, or hospital bills?
Worse, your employer cover ends the day you leave the job or retire. That’s why you need your own personal policy — one that follows you no matter where you work.
Your family deserves protection that doesn’t depend on your office ID card.
4. “PMJJBY Is Good Enough.”
PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana) is an excellent start — for just ₹436 a year, it offers ₹2 lakh life cover. But let’s ask the real question:
Will ₹2 lakh be enough for your family if you’re no longer there?
For most households — with kids, loans, or aging parents — the answer is no.
PMJJBY should be your foundation, not your finish line. Once your income grows, aim for a ₹10–₹50 lakh term insurance plan to cover your family’s actual needs.
Start small if needed — but don’t stop there.
5. “The Agent Knows What’s Best for Me.”
Sadly, not always. Many agents push policies with higher commissions, not higher benefits.
They may sell you a traditional or endowment plan because it earns them more — even if it gives your family very little cover. That’s why it’s your job to ask the tough questions:
- Is this a term plan or a savings plan?
- How much will my family get if I die in Year 3?
- What’s the real sum assured?
Understanding your policy isn’t optional — it’s your responsibility.
Don’t buy blindly. Compare. Ask. Learn. Then decide.
Final Thought:
Insurance Myths Delay Action — And That Can Be Costly
In India, many people regret not buying insurance. Rarely does anyone say, “I wish I hadn’t.”
The truth is — a ₹500/month premium can save your family from complete financial collapse. And that’s not an exaggeration.
So don’t wait for age, pressure, or March tax season to wake you up.
Start with one clear question:
“If something happens to me tomorrow, can my family manage without me?”
If the answer is “no” — you already know what to do.
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Your protection doesn’t need to be perfect.
It just needs to start.
