1. Insurance is for saving tax

Saving tax is just an added advantage of insurance policy. The main objective of insurance is to provide protection to you and your family and to build an assured corpus for your future needs.

2. Insurance will benefit only after my death

Insurance policies provide protection to you and your family. One of the main objectives of taking insurance is to provide financial cushion to your family in case you are not around but it’s not the only objective. Insurance helps you to build a corpus for yourself; provides you with comfortable retired life and even takes care of your lengthy medical bills.

3. My group insurance is adequate

Your group insurance might be adequate but what if you change the job? Once you change the job your group insurance will cancel off and you will not get any insurance benefit. So it is always advisable to take insurance other than the insurance offered by your employer.

4. Only the Breadwinner of the family needs insurance

Every family member needs insurance. Your work profile changes the insurance needs but certainly does not eliminate them.

5. I’m single and don’t have any dependents, therefore I don’t need any coverage

You might not need a life insurance policy where your nominee is taken care of but you certainly need a policy to take care of your health and retirement worries..

6. Life insurance is far more important than health coverage

As the health costs are increasing by the day, taking a health insurance plan has become as important as a life coverage plan. Health plans, disability plans and critical illness plans provide you with financial cushion and compensate for the financial loss you suffer in case you are not able to work because of illness.

1. Personal loans are unsecured

Unsecured loans, as mentioned above, are loans that do not involve any asset as a collateral or security. Because of this, they are difficult to avail. In case of default, the bank or finance company cannot directly seize your home or car; they can still use other collection techniques. This involves filing a lawsuit against you, sending collection agencies to your doorstep or reporting delayed payments to the credit bureau.

2. Personal loans have a fixed interest rate

A fixed interest rate can be very advantageous to you, since you can manage your finances better. There are never going to be any unexpected hikes on the rates, hence, budgeting can be easier. The amount of interest will depend upon the bank or the finance company you have borrowed this loan from.

3. Personal loans are more difficult to get

Before you can avail the loan of your preferred amount, the bank will need to check your eligibility. The amount of the loan depends highly on your credit history and income. The cleaner your credit history, and higher your income, the larger would be the loan amount you would be eligible to borrow! Personal loans are however, extremely flexible and suitable for a wide variety of things that may require some extra funding.

4. Personal loans have a fixed repayment period

The repayment period of your personal loan is decided mutually between the lender and the borrower, before evaluating the eligibility of your application. The tenure will vary, and the length of repayment period will decide the rate of interest.

Personal loans can be utilized for a wide variety of things; therefore, they are one of the most preferred types of loan for majority of the people. Apply for personal loan in order to increase your purchasing power and avail a smart repayment system.