Life insurance policy, if selected well and with the right mindset, can provide you the much necessary financial cover in case of any unforeseen situation. However, there are several buyers who buy the life insurance coverage just for the sake of it without knowing the actual reasons behind that. According to PNB Metlife, many buyers invest money in life insurance for certain wrong reasons which are explained below:
Want to Save on Tax:
The first and the foremost reason for which people buy life insurance cover is to save on their income tax. There are many other better ways by which you can claim tax benefits under section 80 C than using the life insurance policy to cover that. Because of this tax saving attitude, many buyers simply purchase the life insurance cover blindly without reading the terms and features and regret later at the time of making a claim for having purchased a wrong policy. Thus, one wrong decision and you can put your family’s financial needs at complete risk.
Want guaranteed returns:
Many buyers are duped by several agents to buy a life insurance cover which can also work as an investment option. By doing this, they unknowingly end up giving higher premium which ultimately increases their overall annual premium for the policy. Also, the returns provided under this scheme will never match some of the other investment offers that government is paying such as PPF account. Also, the buyer is attracted so much by the returns offered that he compromises on his actual motive of buying a life insurance policy, thereby again putting his future financial needs under huge peril.
No Medical check-up required
Many insurance companies allow the buyer to purchase a life insurance cover without actually they undergoing a medical check-up in case the sum insured is less than Rs 5 lakh. Some incognizant buyers easily get into this trap and purchase this policy without weighing the pros and cons of this. Never buy a policy without a proper medical check-up performed. Proper medical check-up puts the onus on the company so that later on they cannot deny the claim to the insured on account of any medical reasons. Never buy a policy in case the insurer is lenient; in fact, you should follow the proper rules before purchasing it so that you do not face any issues at the time of settling the claims in future.
Many people opt to buy life insurance out of personal favors instead of a genuine need. It may happen that sometimes, an agent may try to lure a customer who happens to be his friend or a family member with a view to achieving his own targets. This can put you in a very tricky situation where you may be forced to buy an insurance even though you really don’t need it or when you are covered under another policy. He may even try to offer you some extra discount to complete the deal. Please remember that it is better to say a firm no in the beginning rather than buying the policy reluctantly.
Others are also buying
A very wrong notion that can house your mind is that a policy ought to be good if your best friend has bought it. Please remember that life insurance policy is for your own self or for your family’s needs. A policy that works well for your friend or relative may not work well for you. The benefits of the policy may depend on several factors such as medical conditions, eating habits, lifestyle such as smoking or non-smoking habit, inherent disease etc. Hence buying the same policy as your friend’s makes no sense since the two of you can never be same physically. Hence don’t buy the policy following the footsteps of your friend or family member but have a strong rationale behind this.
At the end of the day, PNB Metlife Insurance is a cover that can shield your family in case of any inevitable unfortunate incident. It is better to plan in advance than regret later. This policy should be purchased only if your reasons are valid and genuine. Buying a life insurance cover out of impulsive mindset can only do more harm to your family than good.