More Common MythsMyth 9: "Nominee and beneficiary are the same" — Fact: Nominee is a trustee, not the legal heir. Write a will to clearly assign insurance proceeds.Myth 10: "Insurance plans with maturity benefits are always better" — Fact: They cost 5-10x more for the same cover. Returns underperform even fixed deposits.Myth 11: "Pre-existing diseases can never be covered" — Fact: They're covered after 2-4 year waiting period. Group insurance covers them from Day 1.Myth 12: "I need the same insurance my parents had" — Fact: Insurance needs change with every generation. Don't buy LIC endowment just because your father did.Frequently Asked QuestionsIs it true that insurers always try to reject claims?

Question

Accepted Answer

No. Rejecting valid claims damages reputation, invites IRDAI penalties, and leads to Ombudsman complaints. The top 10 life insurers settle 97-99.5% of claims. Rejections are almost always due to material non-disclosure by the policyholder.

15 Insurance Myths Exposed: Stop Believing These Lies About Insurance

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