5 Reasons People Do Not Have Their Life Insurance In Place

1) People think that it is death insurance

No one likes to even think about death. Forget about talking anything about the same. However, it is actually life insurance. Life of near and dear ones after the sudden death of the breadwinner of a family. Life Insurance is never done to make a person or family rich but to protect them from ever being poor. Many families have suffered because of inadequate insurance cover of the breadwinner in the family.

2) No proper information on the adequacy of life cover

When we insure our car or any property we know the value of the same and accordingly insure with the Insurance Company. However, when it comes to Life Insurance, nobody is aware about the adequate value for which Life Insurance can be taken. It is therefore very much important and necessary to take the consultancy of a professional life insurance agent, who can help to understand the concept of Human Life Value or Capital Liquidity Need Analysis (CLNA) which precisely derives the adequate value of a person’s Life Insurance requirement.

3) Life Insurance is bought just to save income tax

It has been found that as and when there arises a need to save Income Tax by investing in the tax-saving instrument, people search for nearby agents most of the time, not so expects, and buy Life Insurance policy with the purpose of saving tax. In the process, the adequacy of life cover is completely ignored.

4) Sometimes people are absolutely unaware/ignored about the consequences

Protecting one’s family financially is the prime responsibility and duty of each breadwinner of the family. Because their beloved family members will not come forward and ask him/her to insure their life. However, the consequences that the family may have to suffer are many a time severe and painful too. People do not want to think over each situation and ignore these things as if it will not take place. Life Insurance is always for one important word “What if” and not necessarily “What will.”

5) Last but not the least, people think that they are not going to die so early….

This is the universal truth which was answered by Dharmaraj in the Mahabharata while answering a life-saving question to Yaksha. He said, people do not learn from their own life experiences. They believe that death is going to take place not to me but to others. This has been observed hundreds of times when people simply say “No” to life insurance for no reason.

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Blog Views : 350 18-08-2021