ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Why Some People Do Not Buy Life Insurance Policies in India

Updated on May 23, 2016

Why Some People Do Not Buy Life Insurance Policies in India

Why Should You Buy Life Insurance?

In a study, individuals aged 22-30 years showed a higher intent (18%) to buy a life insurance policy when compared to the older age group of 31-40 years (16%). The study was conducted by Nielsen and the findings were published in a report titled “Investing for a Better Life” in 2013.

Getting a life cover is probably one of the most important investment decisions you will ever take. It is needed by anyone who has a family to support and who is an income earner, according to the IRDA. Life insurance is meant to provide cover against death and disability. It provides future financial security to your family in the case any unfortunate incident. However, Indians do not pay heed to the need for this because it does not offer high returns. In reality, it not meant to offer returns, it is meant to offer security. Read on to know some of the reasons why people shy away from buying a policy in general and online term insurance in particular.

Devil May Care Attitude

Indians have this attitude that they will deal with the situation when it finally arrives. When the breadwinner of a family passes on, the entire family is affected financially. While you will not be here to deal with the situation at all, your family may face the brunt of your poor decisions. They may even have to cut short their necessary expenditures due to lack of money, such as your child’s education and healthcare needs.

Talking About Death is Taboo

Talking about the death of a person is considered inauspicious and insensitive. Consequently, there is no mention of protection against death. Fact is, we are mortals and death can come knocking on anybody’s door anytime; young or old. Therefore, it is better to be safe than sorry and fulfil your responsibility of providing your family with the necessary financial protection when you still have time.

Lack of Money

Lack of money is another reason cited by people for not getting a life cover. Even when they do have money, they prefer investing in products that offer returns. In such a case, you can consider buying a term plan. Term insurance rates are considerably lower than other policies mainly due the fact that the entire premium amount goes towards funding the risk. Bharti AXA recommends buying the policy at an early age and quitting smoking to get lower premium quotes. You can use the term life insurance calculator online to determine the most affordable premium amount. You will need to select the tenure, cover amount as well as furnish some personal details to calculate the premium.

Claims Are Rejected

It is one of the most common myths related to the life insurance industry that claims are rejected. In reality, this is not the case. In fact, the claims settlement ratio by private insurers rose from 88% in FY14 to 89.48% in FY1, says an article published in Livemint. These figures totally debunk the myth, and indicate that 90% families received financial security on the demise of a loved one.

Claims cannot be rejected unless there is a valid reason to do so. One of the most common reasons for claims rejection is providing improper information while buying a policy. For instance, if you are suffering from a chronic disease, it is better to inform the insurance company upfront.

As per the IRDA regulation, the insurer is given three years to detect misstatement by the consumer. If the policy has completed three years, the insurer cannot reject claims even if the information provided by you was inaccurate, says an article published in Jagoinvestor in December 2015.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)