sruchika

It is a generally accepted fact that there are many and huge risks involved in various spheres of life. The probability of occurrence of hardships or events causing despair is uncertain and it can happen to anyone. The easiest way to cover one from the impact of these events is to get insurance. Insurance plans are always the go-to plans which are not only low risks but offer guaranteed returns if the terms and conditions mentioned in the policy are properly followed. Insurance policies cater to the different needs of people of different age group, different requirements, and different financial strengths. Life insurance refers to protecting the needs and future goals of the loved ones following the loss of the earning member of the family. Various types of life insurance policies are available in the market and one needs to have knowledge of the same as to which plan is ideal for them. It is strongly advised not to keep away from investing in life insurance policy as life insurance is the backbone of financial security.

The basic five factors that keep a person from investing in a life insurance policy are:

Lifestyle:

One needs to be very particular about his or her lifestyle so as to consistently enjoy good health. Lifestyle habits such as excess body weight, smoking and heavy drinking cause lower immunity in the body and it exposes a person to the risk of premature death. Such habits tend to increase the risk of insurance companies offering life insurance policies. Due to this, the overall cost of life insurance premiums will also increase. Lifestyle shall not only mean taking care of physical health but it shall also mean to be well aware of your mental health. The human mind, as the experts confirm, can make a dramatic change in the lives of self and others if used properly. The mind feeds on all possible thoughts and emotions one faces in a day. Such thoughts help us to define the life that we live and the lifestyle that we follow. Any degrade in mental health due to above reasoning can also lead to premature deaths. Harmful lifestyle can result in developing of mental health problems which may pose as threats in disguise for life insurance companies.  Hence maintaining a healthy lifestyle is important and our harmful lifestyle can also keep us from getting life insurance.

Income:

Generally, people in the lower income groups tend to ignore the premium cost due to the scarcity of funds available at their disposal. People in this category find it difficult to keep up with day to day expenses, inflation or other sudden expense. This may cause them to delay or refrain from buying life insurance. It is a fact that a financially unstable present leads to an unsecured financial future. People in the low-income group also have the insecurity of paying regular premiums as many of them don’t have a stable job. Here, due to lower income, not only does the financial aspect plays a pivotal role in not investing in insurance plans but also, no or less knowledge of the plans and awareness of the importance of life insurance lead to non–investments. As they do not have access to various basic amenities, information about life insurance plans is not widely dispersed.

Age:

It is a universally accepted fact that age and cost of premium are directly proportional to each other. Lesser the age, lesser will the premium costs and higher the age, higher will the premium costs. As risks related to higher age groups increase, insurance companies charge higher premiums to cover these risks. This is because, as we get older our body’s immune system that fights diseases also becomes weak and the body is more prone to get any serious diseases like heart problem, diabetes etc. Old age is one of the basic factors that keep an individual away from investing in life insurance.

Like old age, another extreme age factor is a young age. Many people at their young age feel invincible and the thought of dying never crosses their mind. As death can come to anyone, it is a mistake to think a young body or mind is free from all the life risks. The thought of ignoring the value of life insurance in young age keeps many from getting life insurance. Another fact is that as we age, the premium amount for life insurance only increase. The premium amount hikes up 6% on every birth anniversary of a person. 

Inaccurate Information:

Many people buying a life insurance plan online or taking it through a life insurance agent. The premium of the life insurance plan is calculated taking into account many different aspects of the person, like age, occupation, lifestyle habits, income, etc. All these factors are assessed before calculating the premium of the plan for a particular applicant. A person who is a smoker will pay more premium than a person who is a non-smoker and maintains a healthy lifestyle. Similarly, a person who has high income will be able to procure a plan with a high sum assured. Many a times, an applicant may get tempted to write false information to secure a good deal on the life insurance plan. If they are a smoker then they may not disclose it to lower the premium amount, or to get a high sum assured they may put a false income figure in the application. Inaccurate information will lead to rejection of the application or claim. Hence, it is always advised to put the most accurate information in your life insurance application so that you are able to successfully get a life insurance plan.

Pre- Existing Disease:

Before accepting some policies, the life insurance companies may ask you to take medical tests to find out whether you have any pre-existing diseases or not. The existence of any disease increases the cost of premiums substantially or even lead to rejection of the policy.  For example – If an applicant is suffering from a life threating disease like cancer, a life insurance policy cannot be issued to them.

Conclusion:

It is important that one gets themselves insured with a suitable life insurance policy. It will not only be a self-help act but will also be helpful to the beneficiaries in case of sudden demise. Insurance plans are like precautionary measures for the curve balls thrown by life. It is there essential to ensure you get your life insurance plan on a timely basis before any of the above factors come in your way.

When you are choosing life insurance in India, you have to look for certain aspects. Purchasing the insurance is dependent on the person’s financial situation and health condition. The plan suitable for your beloved may not be the right one for you. So before buying any plan understand them and according to your need buy it.