The world is full of myths, and the insurance sector is no different. Although life insurance should be an essential part of everyone’s finances, a lot of people don’t opt for this safety net because they perceive it to be complex and are discouraged by the many myths surrounding it. Let’s debunk some of the false notions that people carry around about life insurance, so that you can make a well-informed decision always.

1. Life insurance is too expensive

This is one of the main reasons that keeps people away from insuring themselves. More often than not, people overestimate the cost of a life insurance policy and assume it’s very expensive. But this is not true. There are many factors that determine the cost of a life insurance policy such as age, gender, health and lifestyle. Nowadays, you can easily check your premium amount online and compare different policies to select the one that’s best fit for your needs. Term life insurance plans are extremely cost-effective with a ₹ 1 crore cover available for premiums as low as ₹ 490 p.m.

2. I am too young to buy life insurance

Most people start considering life insurance only after they get married and have children. This is not right. In fact, the best time to buy life insurance is when you are young. The cost of your premiums increases as you age, because you are likely to have more health concerns than you did when you were young. Ideally, your 20s are the correct time to buy life insurance. You can get the policy at very low premiums. Moreover, if you opt for a term life insurance during this phase, with limited pay options, you can also pay off the premiums during the younger years of your life, when you have very little responsibilities, and lead a more secure and carefree life later.

3. I already have a life insurance cover from my employer

Almost all companies today provide life insurance for their employees. But there are a number of reasons that validate the need to buy an additional policy apart from the one being provided by your employer. Firstly, the insurance payout from your employer’s policy is generally only 2-3 times the salary and may not be sufficient to meet your financial needs. Your life cover should be atleast 8-10 times of your annual salary to ensure your family doesn’t face any financial problems in your absence. Secondly, most of the time these policies are not portable. So, you enjoy the benefits only as long as you work for the same company. But if you are laid-off involuntary, or decide to change career lanes, you may lose out on your insurance too.

4. Life insurance is a waste of money

It is a common perception among many that if one saves diligently then they do not require a life insurance policy. But what if you contract a critical illness or meet with an accident in the prime of life? Your family can be left behind with exorbitant expenses and other responsibilities to deal with. A life insurance policy proves to be extremely helpful in such unfortunate circumstances.
A related myth regarding life insurance is also that if one lives throughout the policy term, then the money is wasted. However, there are many policy options available these days that have a maturity benefit too. Do keep in mind though that the main purpose of life insurance is the financial protection of your family in your absence, and act accordingly.

5. My nominee won’t get the claim

This is a valid concern. To avoid this from happening, one should do proper research about the insurance provider before taking the policy. There are certain parameters like claim settlement ratio (CSR) that can help you select the best term plans and deals. You should aim to avoid buying a policy with a lower CSR, even if the premium seems lucrative. It is important for you to understand the terms of your policy so that your nominee can benefit from it later.

6. You need to go through a lot of paperwork to get a policy

Gone are the days when you had to complete a lot of paperwork to get insurance. With the internet revolution in full swing, you can easily calculate your premiums, compare and analyze different life insurance plans, fill your application form and buy a policy online, all at the click of a button!

7. Life insurance is only for the male breadwinner of the family

Gone are the days where men were the sole breadwinners of their family. Women are increasingly becoming an equal contributor to their household and the need for their insurance is as much as their partner’s. The absence of any member of the family can bring an indescribable void. Life insurance can be very helpful in such situations.

Life insurance can keep you and your loved ones secure. But there are many misconceptions and myths surrounding the topic that deter people from buying it. Hopefully, we have debunked some common myths associated with life insurance and encouraged you to get yourself and your family members insured.
With our top-selling1 term plan, ICICI Pru iProtect Smart, you can get your family insured with ₹ 1 crore cover at premiums as low as ₹ 490 p.m.2 The policy pays out on diagnosis of terminal illness3 and provides premium waiver in case of permanent disability3. You can also opt for additional protection against 34 critical illnesses4 and death due to accident5.


ADVT: W/II/0914/2019-20

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1Top-selling plan refers to ICICI Prudential Life Insurance plans which are bought by customers through the website with our Zero-Paper-Process. Source: Company BuyOnline data - Dec 2015 till date.

2The above mentioned premium rate is for ICICI Pru iProtect Smart for ₹ 1 Crore of life cover for a 25 year old healthy male for a policy term of 21 years with regular income payout option. The annual premium will be ₹ 5725 & the monthly premium will be ₹ 490. The premium amounts are inclusive of taxes.

3Refer the product brochures for the definitions, exclusions and other terms and conditions applicable for Permanent Disability due to accident and Terminal Illness.

4Critical Illness Benefit is optional and available under Life and Health and All in One options. This benefit is payable, on first occurrence of any of the 34 illnesses covered. The CI Benefit, is accelerated and not an additional benefit which means the policy will continue with the Death Benefit reduced by the extent of the CI Benefit paid. The future premiums payable under the policy will reduce proportionately. If CI Benefit paid is equal to the Death Benefit, the policy will terminate on payment of the CI Benefit. To know more in detail about CI Benefit, terms & conditions governing it, kindly refer to sales brochure. Critical Illness benefit is available till age of 75.

5Accidental Death benefit is up to ₹ 2 Crores. Accidental Death Benefit is optional and available in Life Plus and All in One options. Accidental Death Benefit cover is available upto age 80.


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