Insurance- Busting myths

 

 

In general, and by nature, we like to protect what we have- our loved ones, our assets, our investments, our health. That is because all these are hard earned. This is also considering the substantial energy, time, effort, heartburn and finances it will take to re-generate this wealth. In some cases the loss is irreplaceable and cannot be really compensated for. Today there are several Insurers handing out all sorts of policies, with varying premium and benefits. It is like a complex maze, and it is easy to give in eventually, only to find out later that the chosen policy does not suit your purpose! In all the fine print and technical jargon, it is important for us to understand 

 

• WHAT we really need to insure
• What SUITS our requirement BEST?

The basic idea of choosing to be insured is that you buy it before you need it, in anticipation. So when some kind of unfortunate disaster strikes -- and it will -- you will not be in a soup of dire financial catastrophe. Insurance allows people to protect themselves from major adversities like illness, injury, death, or vehicle/ asset damage by combining their risks with other people, and paying into a pool, which will pay out money if you experience a specific kind of calamity. For this arrangement, you pay a monthly with a pre-determined amount of money called as the Premium.

 

The term ‘Insurance’ has turned into an umbrella-term that covers many requirements and hence there are many myths that circulate, can be a reason to hoodwink the user. The following common and misleading myths can muddle our heads

 

• If you are young and healthy, you don’t need it. You're too young to worry about life insurance.

Fact: Calamity can befall anyone. An Insurance cover can help you keep your head above water.

 

• If you have health issues, you cannot get it.

Fact: Conditions such as diabetes, high cholesterol and arthritis will mean higher life insurance quotes, but insurance could still be within reach. Unless you have severe health conditions, you generally can buy term life insurance.

 

• If you are single, you do not need it.

Fact: Life insurance would help if you’re single and own a business, have major co-signed debt or have dependants like aging parents. But having a policy could mean that no one else ends up encumbered with your debt!

 

• It is expensive!

Fact: It is construed in proportion to the protection you need in reality. In complete contrast, India has extremely attractive schemes to offer under the Jeevan Jyoti Bima Yojana (premium of Rs. 330/- only), or the Suraksha Bima Yojana (premium of Rs. 12/- only), for a coverage of Rs. 2 lakhs.

 

• It is not available for older people.

Fact: Even if you’re over 60 years of age, term life insurance is available, unless you have a terminal illness. The cost of coverage will of course be much higher for older people.

 

• Life insurance through your employer is sufficient to cover all your needs.

Fact: A workplace policy does not move with you when you change jobs. Employer Insurance normally offers group insurance policies covering you when you travel for work or work in factories. They typically have very low pay-outs that will not compensate for your loss. 

 

• Only the breadwinner needs life insurance.

Fact: Anybody and everybody can be exposed to accidents, at work or home. It is ultimately the strain on the family’s collective resource. Hence it is always a good idea to make provisions for all dependents. 

 

 

Most progressive banks have now ties with reputed Insurance companies. The advantage of opting for insurance through your bank is there is always a factor of reliability and assurance that comes through your bank. Not to mention the convenience, and speeding the process as all the required financial data is readily available. 

 

Janakalyan Bank has precisely perceived the need and now offers a variety of Insurance options like Health, Life and General insurance. Each type of insurance, however, serves a completely different purpose and offers different coverage at different stage of life. Life insurance pays out a death benefit to your beneficiaries in the case of premature death. Health insurance, on the other hand, helps pay for medical expenses such as doctor's visits, hospital stays, medications, tests, and procedures. General Insurance is non-life and compensates for loss of tangible assets that we value. Hence general insurance products are more popular as they provide protection against unforeseeable contingencies like damage and loss. Then there are also disability, marine, travel, property, vehicle, fire, business and business interruption and now even malpractice insurance available a well, to cover your specific needs as and when required. Janakalyan Bank understands your financial profile, and can also advice what insurance solutions can suit you best. 

 

 

It is important to remember that insurance needs can change dramatically during different life stages. Making that small investment in any insurance plans, will enable you to be tension-free and offer security in advance. Insurance is not just a tax-saving tool, but a mean to have that peaceful sleep at night knowing that you and your loved ones, and everything that you have worked hard for, is secure.