Insurance Confusion Ends Here: 5 Myths Busted!
On National Insurance Awareness Day, let’s take a moment to understand why many Indians still hesitate when it comes to buying insurance. Despite endless research and growing awareness, confusion remains. People often struggle with questions like — “Is this too expensive?”, “Am I too young to need this?”, or “Do I really need more than what my company offers?”
These doubts are common, and they’re usually caused by misinformation. This article busts the top insurance myths and explains what experts actually recommend.
What is National Insurance Awareness Day?
Celebrated on June 28, National Insurance Awareness Day reminds us of how important it is to protect our health, life, assets, and businesses. Sadly, India’s insurance penetration dropped to 3.7% in FY 2023–24, according to IRDAI. This is lower than the 4% recorded the previous year.
Tarun Chugh, MD & CEO of Bajaj Allianz Life Insurance, said that the sector is going through a big transformation. New policies are making insurance more affordable and accessible, but people still need proper guidance to choose wisely.
Myth #1: Corporate Coverage is Enough
Most salaried individuals depend on the insurance provided by their employer. But is it really enough?
According to Vishal Gupta, CEO of PhonePe Insurance, corporate policies often come with limited coverage and may not protect your family fully. They might not include serious illnesses or high hospital bills. Worst of all, if you leave your job, you also lose that insurance.
Reality: Buy your own individual policy to make sure your family is always covered.
Myth #2: Insurance is Too Expensive
Many people believe insurance is a luxury. If they haven’t had to use it, they see premiums as a waste of money.
But here’s the truth: Premiums are lower when you’re younger and healthier. Also, health emergencies can happen without warning. When that happens, an active insurance policy saves you from massive out-of-pocket costs.
Reality: Skipping insurance may save money today but cost you much more later.
Myth #3: No Need to Buy Insurance When You’re Young
This is one of the most dangerous myths.
“Buying early means lower premiums, smoother approvals, and better coverage,” says Gupta. Getting a health or term insurance plan in your 20s locks in affordable rates for decades. It also protects your family if something happens to you.
Reality: Start early to get the best value for your money.
Myth #4: Filing a Claim is Complicated
Not anymore.
Aditya Sharma, Chief Distribution Officer at Bajaj Allianz General Insurance, says digital tools have made the process simple and fast. Most insurers today allow online claim filing, tracking, and payouts—cutting down delays and paperwork.
Reality: Modern insurers are using tech to make claim settlements easy and fast.
Myth #5: I Know Enough—No Need for Help
Insurance is complex. Terms like co-pay, waiting period, and room rent limit can be confusing.
Gupta says PhonePe advisors are trained to guide customers honestly. They help buyers compare plans and understand details—without pushing unnecessary products.
Reality: It’s okay to seek expert advice. It helps you make smarter choices.
What to Check Before Buying Health Insurance?
When choosing a health insurance plan, always look at:
- Co-payment clauses
- Consumables cover
- Room rent limits
- Cashless hospitals
- Claim settlement ratio
According to Gupta, PhonePe’s platform allows users to compare features and buy the best-fit plan in just a few clicks.
Final Thoughts
On this National Insurance Awareness Day, remember: Insurance isn’t a luxury. It’s a life plan.
Avoid letting myths stop you from securing your health and future. Whether it’s for yourself, your family, or your assets—insurance provides peace of mind when you need it most.
Start early. Stay covered. Stay smart.
Also Read : Pramerica Life Insurance Sets New Standard with 99.18% Claim Settlement Rate
