5 Common Excuses to Not Buy Life Insurance

Insurance is an integral part of any financial plan as it safeguards against the unpredictability of life. Different insurance schemes have different goals. For example, a money saving plan or  savings insurance plans can help you build a significant retirement corpus. A life insurance policy provides a financial security net to your loved ones.

What is the need for life insurance?

Depending on our needs, a life insurance policy can act as a savings plan, be used as income replacement, provide extensive life cover and also become a long-term investment. However, people choose to believe in various myths which keeps them from finding the right insurance policy for themselves. There are many reasons why people avoid buying insurance. This is mainly due to the lack of awareness and understanding of different insurance products and how they can be leveraged to suit our needs.

If insurance can offer so much to protect the policyholder's interests, why do people make excuses to not buy a life insurance policy? Here are the five most common excuses to not have a life insurance policy:

Excuse 1: “Healthy people don’t need insurance.”

This statement is most commonly used to justify not buying an insurance policy. However, one should not underestimate the uncertainty that the future holds. An individual might be healthy in the present. But there is no guarantee that they will be immune from all the life-threatening diseases for the times to come. The coronavirus pandemic has made it pretty evident that no one is truly immune. Similarly, other critical illnesses might arise with sudden symptoms.

Being healthy is all the more reason to take up a life insurance policy, as the person will have to pay comparatively lower premiums for their stellar medical records. Moreover, life insurance is not for the policyholder alone; your family members also need to be protected against emergencies. In your absence, your family can benefit from the sum assured and lead their lives with dignity. Moreover, if you have a savings plan, the corpus can be used to fulfil your various dreams and goals.

As you can see, life insurance serves multiple purposes and is not just limited to providing life cover.

Excuse 2: “The process of taking a life insurance policy is too complex.”

The above statement is true if you’re thinking about the 1990s. Yes, buying a life insurance policy felt like a chore then, as one would have to coordinate with the agent who would try to convince the client to buy the insurance policy that would fetch them the highest commission. The documentation process was long and time- consuming.

However, all this has changed in the last many years. Anyone can easily buy life insurance online now. For example, you can compare all offerings of Tata AIA on their official website, which also has a term life insurance premium calculator. After choosing the right policy for you, all you need to do is upload the documents online, and you are good to go!

You can even buy insurance through your mobile phone when you’re travelling, which eliminates the restriction on movement!

Excuse 3: “The premium amount can be invested elsewhere.”

There can be plenty of ways to invest money but not all can assure you of guaranteed1 returns. Life insurance is a low-risk way to make a guaranteed returns  savings plan and to protect yourself and your family with a life cover. It is also a more disciplined way of saving money through your monthly premiums instead of having to calculate how much you would like to save each month.

An endowment plan or a money-back policy can function as a savings insurance. Under a savings plan, you can benefit from a monthly income after the maturity date. Some policies also offer lucrative guaranteed1 returns along with the return of premium. A money saving plan can also be a great tool for preparing your retirement corpus.

Excuse 4: “I will get a life insurance/term insurance policy once I start a family.”

Once an individual takes life insurance or term insurance, they have the flexibility to choose or change the beneficiary. Insurance is not only meant to cover your spouse and children but also your parents and siblings. Also, one need not wait until marriage to get an insurance plan.

The best time to buy a life insurance policy is in the early 20s as you can get lower premium rates, owing to good health. However, the premium amount increases with age. With a savings plan, you can start saving early and then enhance the life insurance coverage and re-plan your savings goals when you have a family. Using the Human Life Value method, you can calculate how much income your family will need in your absence. This method takes into consideration your age, gender, retirement age, your current income, the number of dependents, etc., to help you understand how much insurance cover you would need to protect your family.

That way, you can make the best of a single insurance plan to cover the needs of your entire family.

Excuse 5: “The offerings of the insurance policy do not match my needs.”

In today’s time, there are different insurance policies to choose from. No matter what your goals and needs, you are bound to find a policy that is tailored to your requirements.

For example, there are life insurance policies that enable you to avail of life insurance cover, save money, increase your sum assured as per your requirements and also provide enhanced protection through riders.

Add-on riders# can enhance the offerings of an insurance policy. Finally, all the different options available can be compared on the insurance company’s website and the policy can be customised to satisfy your needs.

Tata AIA Money-Saving Plans

Tata AIA offers versatile money-saving plans with add-on rider# options with which one can craft the policy to fulfil all their needs. These plans guarantee1 the return of the premium as well as the flexibility of receiving regular income apart from providing life cover to you and your loved ones.

These plans ensure that your savings and life cover needs are met through a single insurance plan. You can not only easily buy a life insurance plan online directly from the Tata AIA website but also make a Tata AIA premium payment conveniently online.

Conclusion

Only by acknowledging one’s mortality can one take the necessary steps to secure their future. Buying a life insurance policy should be a priority from the moment one starts earning an income. It is because people weigh the cost of an insurance policy against the benefits of life insurance that they use unfounded excuses to not buy insurance. However, an insurance policy can be flexible, affordable and can function in various ways apart from offering a life cover.

L&C/Advt/2021/Jul/1223