This is a prevailing concept that Pakistanis are less interested in buying health and life insurance. Many experts are anxious about the ongoing decreasing rate of holding insurance due to unending economic challenges and rising inflation, causing further deterioration.
Pakistan residents, on average, earn between $4 and $30 per day, excluding them from the insurance coverage, regardless of being primary targets. In this factually high inflation rate, it becomes challenging for them to put food on the table and purchase insurance, too.
However, in addition to these economic concerns, various other myths and misconceptions prevent Pakistanis from purchasing health and life insurance. These myths are numerous, and clarifying them is as essential as it could be to secure your future and that of your loved ones.
In this Cometinsure blog, we’ll enlist all of these misconstructions about health and life insurance, enabling you to make a well-informed decision.
7 Common Myths Dominant in Pakistan
Myth 1: Life Insurance is About Death
It’s a common misconception in Pakistan that life insurance pays off when the policyholder passes. In actuality, it isn’t so; the scope of life insurance is versatile, including coverage of medical bills and avoiding financial stress if you pass away. A reliable insurance provider offers several benefits, especially if you’re the breadwinner of your family, such as income replacement to relieve your loved ones from future mortgage payments or to upkeep their quality of life.
Myth 2: This is a Fraud
Claims don’t pay off is the most conventional fallacy that needs to be avoided at every possible moment. Various instances show that middlemen often scam policyholders, making Pakistanis distrustful of health and life insurance. It’s about a mutual commitment between the policyholder and the policy giver. You’ll be rewarded if you fulfil your obligations throughout the policy lifecycle. A reliable insurance provider generates more promoters than detractors. And when you pay quickly and frequently, it helps grow revenue and profits.
Myth 3: I’m Too Young to Buy a Life Insurance
Individuals living their formative years are less interested in health and life insurance because their youth makes them invulnerable. However, buying insurance in the later years isn’t a smart decision due to the higher payment requirement as you age, ultimately ending up with higher payment. Moreover, getting the same coverage even if you’ve maintained a good health condition becomes difficult, impacting your overall revenue.
Myth 4: Only Rich people Can Afford Life Insurance
People with little resources in Pakistan think these are the things of well-off beings. However, insurance policies come with diverse coverage at a budget that is friendly to your pocket. You can opt for a personalised plan that aligns with your finances, even giving you the opportunity to build up the sum assured as your income upsurges.
Myth 5: I Do have Investments, so I Don’t Require Life Insurance
Though the right investments serve the best to upgrade your account, total dependence on those savings isn’t wise for the financial support of your loved ones in the advent of misfortune. Even substantial savings can run short for serious medical conditions or a fire, resulting in the loss of life and resources. Also, these investments don’t mandate maturity, which means they can be used ahead of time, ultimately losing finances. Alternatively, health and life insurance guarantees financial support in the long run to sustain your family lifestyle.
Myth 6: Only the Working Parent Needs Health and Life Insurance
There’s no lie that health and life insurance give full coverage to working parents, encompassing income loss and enduring family protection in case of family homemaker passing. But those young children and elders cannot be overstated; who would care for their activities? Health and life insurance gives importance to each individual equally, serving everyone.
Myth 7: Buying Insurance Requires Literacy
This is one of the common myths and misconceptions among Pakistanis that buying health and life insurance requires any sort of technical knowledge, hesitating to contact contractors due to the low literacy rate. However, if you can adopt the internet, e-commerce platforms, or social media, why not insurance? The insurance service needs to learn the target market’s general dynamics to reach the policy level.
