Insurance myths are silently draining your money and weakening your financial safety net. Bust these 5 common myths before they cost you big! In this post, we’re busting 5 big myths that are quietly sabotaging your finances—and telling you what to do instead.
Table of Contents
Myth #1: “I’m Young and Healthy, I Don’t Need Insurance Yet”
Truth: That’s exactly why you need it now.
Premiums are lowest when you’re young and healthy. Waiting until you’re older (or sick) means higher premiums or even rejection.
📌 Real Cost: Delaying health or term insurance could mean paying 40–60% more in premiums later—or being uninsurable due to pre-existing conditions.
✅ Smart Move: Buy term and health insurance early. Lock in a low premium and relax for decades.
Myth #2: “Employer Mediclaim is Enough”
Truth: Corporate health plans are not forever.
You may lose your job or switch companies—and guess what? The policy vanishes. Plus, most employer policies have room rent limits, low sum insured, and no OPD cover.
📌 Real Cost: A major illness in a private hospital could burn ₹5–10 lakhs. Your ₹2 lakh employer cover won’t stand a chance.
✅ Smart Move: Always have a personal health insurance policy, even if you’re covered at work.
Myth #3: “Term Insurance Is a Waste—You Get Nothing Back!”
Truth: Term insurance isn’t an investment. It’s protection.
Would you say fire extinguishers are useless because you “never used them”? Term plans give massive coverage at a low cost to protect your family’s future.
📌 Real Cost: Skipping term insurance could mean your family struggles financially if something happens to you.
✅ Smart Move: Get a pure term plan with a sum assured of at least 15–20 times your annual income.
Myth #4: “ULIPs and Endowment Plans Are the Best of Both Worlds”
Truth: These bundled products often give you the worst of both.
They mix insurance with investment—but come with high charges, low returns, and confusing structures.
📌 Real Cost: You might earn just 4–6% over 10–15 years, which barely beats inflation.
✅ Smart Move: Keep it simple. Buy term insurance for cover, and invest in mutual funds or PPF separately.
Myth #5: “I’ll Buy Insurance When I Have More Money”
Truth: The longer you wait, the costlier it gets.
Insurance doesn’t wait for your salary to grow. Accidents, hospital visits, or a sudden diagnosis won’t check your bank balance first.
📌 Real Cost: A delay could mean higher premiums—or worse, rejection due to health issues.
✅ Smart Move: Even a basic term or health plan today is better than waiting another year.
Final Thoughts: Stop Believing, Start Insuring Smartly
Insurance is not a luxury—it’s a life jacket. And myths around it are dangerous. These false beliefs are quietly costing people lakhs, and you don’t want to be one of them.
📌 Take action today:
✅ Review your policies
✅ Separate investment from protection
✅ Educate yourself—because smart insurance is smart finance.
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