Feb 12
24
When you ask people about the different topics that they want to think about, you will probably find the topic of life insurance among the last items of their list. It is a fact. Almost nobody wants to think about or rather yet, talk about life insurance. One reason for this is that life insurance is associated with the thought of a person dying and since nobody wants to think about dying, they do not want to think about anything associated with it either. Another reason that people shun away from discussions about life insurance is because of the confusing terminology that goes along with it.
At the same time, even if one is willing to listen, it will not be easy to explain. The terminologies are one big barrier, but more than that, the misconceptions, which have taken root in people’s mind about life insurance policies are the main obstacle. Let us now talk about few such myths, which need to be debunked at all cost.
Myth 1. Life insurance is only for people who have dependents. While it is true that the main goal of a life insurance policy is to protect one’s spouse and children by means of death benefits that will replace your income if you die; it does not necessarily mean that you won’t need a policy if you are unmarried. A low cost life insurance policy can be used by an unmarried person to pay for unsettled debts and funeral expenses once this person dies. The benefits can also be used for charity and an inheritance to a relative to serve as a person’s legacy.
Myth 2. “My job gives me life insurance; I’m sure that is enough.” All companies are required to have personnel insurance and are required to indemnify loss of a personnel’s life if the death is work related. However, the amount of coverage that companies will pay out may not be sufficient for the immediate and future needs of your family. If you do not have dependents then the coverage from your company may be enough. However, if you lose your job, you will also lose your life insurance and therefore you may not be able to avail of its benefits.
Young and healthy people do not need life insurance coverage – This is a major misconception. It is true that young and healthy people generally do not die, but there is no guarantee that they will not. It is also a fact that younger people are least ready for self insurance. If such a person die uninsured, his family faces worst kind of financial turmoil. What is more, if you compare quotes life insurance, you will find that rates increases with age. That is why if you want your family to be secured and the coverage at an affordable rate, you need to buy it early in life.
There is only one type of life insurance policy: More often than not we buy what our financial advisors suggest. Indeed, few of us are aware that there are different types of policies, each with different price tag and offering different types of coverage. That is why we often end up with the wrong kind of policies. Those who want plain life insurance coverage with lowlife insurance rates often are forced buy more expensive cash value policy. Indeed, before you buy any policy at least compare life insurance quote on line and then make an informed choice.
Myth 5. Purchasing a policy is too much trouble and time consuming. A lot of times, people forgo purchasing a policy because they think that doing so will mean that they have to set aside a lot of time to listen to insurance agents explain all the terminologies, have to undergo a medical exam and wait for a while to be accepted or granted a policy. Traditionally, this is how a policy is purchased. However, because of the advances in technology, you can purchase a no medical exam life insurance policy on line. Nowadays, a person simply has to visit a website of an insurance company, enter his/her personal data, honestly disclose his/her medical background, choose the amount of coverage that he/she prefers, wait a few minutes then he/she will already receive a life insurance quote on line.
Not knowing the truth about life insurance policies may cause a person to avoid purchasing one. It is better to debunk all the myths about insurance to have a better understanding of it.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life insurance term and life insurance online, visit his site today.
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