Many young professionals juggle home loan EMIs, school fees, and daily expenses. With so much on your plate, it’s easy to believe common insurance myths and put protection plans off to the future. Instead of thinking only about taxes or age, it helps to understand what these plans really do: safeguard your family’s future and build a nest egg.
Myth 1: “Insurance Is Only for Tax Saving”
A lot of people treat insurance like a tax break. Yes, policies do offer deductions under Section 80C, 80D, etc., but tax saving is a bonus, not the main goal. The tax deductions are “an advantage” of a life policy, but “it is not the main purpose”. The real purpose of a savings insurance plan is to give your loved ones financial protection if something happens to you.
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Myth 2: “I’m Too Young to Need This”
Accidents and illnesses can happen at any age. Starting early has other practical benefits. Younger people lock in much lower premiums than they would pay later. When you buy insurance at a younger age, you “have to bear a lower cost of a premium compared to what you would pay when you are older”. This also means more of your money goes into your family’s protection and savings over time.
Myth 3: “My Employer’s Cover Is Enough”
It’s common to rely on your workplace’s group insurance and skip your own policy. In many cases, it only pays out one or two times your annual salary. That might sound like a lot, but it can fall short of covering all family needs – especially if you have a mortgage or young kids to support. Taking out your own savings insurance plan fills this gap and stays with you, job to job.
Why Does a Timely Savings Plan Matter?
Understanding these myths makes one thing clear: a savings-based insurance plan is about long-term stability, not immediate rewards.
For Younger Salaried Professionals (20s–30s):
- Being an early bird locks in the lowest premiums.
- FIRE (Financial Independence, Retire Early) is a big aspiration.
- Markets are unpredictable—guaranteed products like HDFC Life Sanchay Plus bring in stability.
For Older Professionals (40s–50s):
- Primary worry becomes longevity risk -living longer than savings.
- ULIPs provide market returns with insurance through growth + protection.
- The annuity products are life-long, which offers stable income and eliminates the stress of retirement.
HDFC Life Sanchay Plus is a savings plan that provides guaranteed returns along with life cover and ensures a steady income for the future. These perks appear to be so easy yet so effective, turning insurance from just a “tax-saving option” into a practical tool that protects your loved ones and guarantees their financial security for the future.
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