Read this interesting snippet in the latest edition of BusinessWorld- which had a special section on Insurance.

Myths in Insurance

- Insurance is an investment: Most of us look at Insurance as a means of saving tax or making handsome returns on the money back policies.

- Life Insurance Cover is sufficient: LICs deep penetration has ensured awareness about life cover, but very low focus is given to protecting life-time assets like home, jewellery etc

- Healthy People do not need insurance: It makes sense to look at a Health Insurance policy even if one is healthy coz:
Premium cover is lower for the young and healthy and even expenses for minor ailments are usually covered in the Health Insurance plans.

- I am insured by my company: Most salaried people get into this trap and do not look at checking the quantum of cover they need and comparing it with what they get from their employers.

- Home Insurance covers all disasters: Do check to verify if your policy protects your home from natural calamities like floods and earthquakes