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Life Insurance-Myths and Realities (जीवन बीमा – भर्म र एथार्थ)

Insurance in Nepal is still in its infancy, but it has huge potential for growth. Life insurance is an important part of a well-rounded financial plan. But let’s face it, it can be confusing. In fact, misunderstandings about life insurance cause many people to skip getting coverage altogether.

Following are the common myths and realities about life insurance.

Myth #1: I’m Single and Don’t Have Dependents, so I Don’t Need Coverage (म जवान छु, अविवाहित छु, एक्लो छु, मलाई जीवन बीमा किन चाहियो?)

Truth: No one knows when their time will come. It is best to purchase life insurance when you’re young and healthy. If you develop a medical problem down the line and don’t have life insurance, you may not be able to get the amount or type of coverage you want. Rates can change fairly significantly, based on your age, so don’t wait—purchase life insurance sooner rather than later. 

Myth #2: Only people with kids need life insurance. (जीवन बीमा भन्या त छोरा छोरी भएको मान्छेलाई मात्र हो चाहिने )

Truth: Chances are your spouse depends on your income, regardless of whether you have children. Could he or she manage to pay the mortgage and all other household bills and debts alone? A life insurance policy could help your partner maintain his or her standard of living and take the steps necessary to move forward.

Myth #3: If your employer provides coverage, there’s no need for more. (साहुले गर्दी हल्या छ मेरो बीमा, मैले फेरी किन गर्नु पर्यो?)

Truth: Many corporations provide their employees with free life insurance worth one or two times their annual salary. These are nice benefits, but if you leave your company without a separate policy in place, it may be difficult, costly or even too late to buy one when you need it most.

Myth #4: Life insurance is too expensive. (जीवन बीमा त महँगो हुन्छ, पैसा कहाँ बाट ल्याऊ म?)

Truth: It probably costs less than you think. For example, a healthy 25-year-old male can get NPR. 10,00,000 of 15 years Endowment Plan for less than NPR. 6,000 per month.

Myth #5: Insurance policies are all the same. (सबै जीवन बीमा उस्तै त हो )

Truth: There are a variety of different types of coverage, and even policies that have similar names may differ substantially in what they offer. So before you buy based on price alone, you need to understand about the coverage, bonus and other benefits.

Myth #6: There’s no reason to insure a stay-at-home spouse. (घरमै बस्ने, कमाई नभएको मान्छे ले किन बीमा लिनु पर्यो?)

Truth: Your stay-at-home spouse may not earn an income, but think of all he or she does to keep the household running: child care, meal preparation, transportation, housekeeping and more. With that spouse gone, life suddenly gets a lot more challenging and expensive. Life insurance can defray the cost of hiring help or changing jobs or work habits to accommodate a new lifestyle in your partner’s absence.

Myth #7: Buy it once and you won’t have to think about it again. (एकपटक बीमा लिएपछि जिन्दगि भरि लाई ढुक्क)

Truth: Life insurance isn’t a set-it-and-forget-it proposition. Every significant life event — marriage, a new baby, divorce, buying a house, retiring — should prompt you to double-check your coverage. Even if you’ve had no big changes, it’s also smart to review the policy every few years to ensure that you’re keeping pace with inflation and still getting the best value for your premium amount.

Myth #8: Buying life insurance is a hassle. (बीमा किन्दा झन्झट मात्र हुन्छ )

Truth: Today, you can use simple online tools like life insurance premium calculator available on website of almost every life insurance companies to determine your capacity. There are few Corporate Insurance Agency like; Life Pvt. Ltd., ebeema.com, etc. which help you to choose the right plan as per your needs.

The most important takeaway is that unless you have enough assets to cover all your debts and provide for your family after you’re gone, you need life insurance—whether you’re 25, 30, 45 or 65. As we grow older, get married, build families and start businesses, we come to realize more and more that life insurance is a fundamental part of having a sound financial plan. Depending on your type of policy, life insurance is fairly cheap, which means there’s no excuse not to get coverage now. Plus, over the years, you’ll find comfort in knowing money will be available to protect your loved ones in the event of your passing.

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