Insurance myths persist because nobody corrects them at the dinner table. They're passed from one generation to the next, quietly keeping millions of Indian families underinsured. Here are the eight most common ones — and the truth behind each.
Myth 1: "I'm young and healthy. I don't need insurance yet." Young and healthy is exactly when you should buy it — that's when premiums are lowest and approval is easiest. Waiting for a reason to buy insurance means waiting until you're less insurable.
Myth 2: "My employer gives me cover, so I'm fine." Group cover ends when your employment ends. It's also typically 3–5x salary — far below the 10–15x most families actually need.
Myth 3: "Insurance agents are just trying to make commission." Some are. But the answer is to work with a transparent advisor — not to avoid insurance entirely and leave your family exposed.
Myth 4: "Term plans are a waste — you don't get anything back." You get the most valuable thing possible: the highest cover at the lowest cost. The purpose of protection isn't to get a return. It's to protect.
Myth 5: "My FD / PPF / property is enough." These are assets, not insurance. They can be sold or depleted. Insurance provides a fresh, guaranteed injection of liquidity at the exact moment it's needed most.
Myth 6: "Insurance claims are never paid." Kotak's claim settlement ratio is 98.5%. IRDAI publishes these numbers publicly. The vast majority of claims are paid — rejections follow predictable, avoidable patterns.
Myth 7: "Buying online is risky." Online term plans from regulated insurers are entirely safe, often cheaper, and come with the same IRDAI protections as any offline policy.
Myth 8: "It's too complicated to figure out." It takes 2 minutes on our quiz. That's genuinely all it takes to get a personalised recommendation.