Top 7 Life Insurance Myths You Should Avoid

For some people, life insurance is not simple and cheap product. So many elements must be taking into consideration before choosing the right one. Do you know that technical aspects and jargons in life insurance are easy to understand for most people? This article will briefly examine top 7 myth and misconceptions regarding life insurance.

I’m alive, so I don’t need life insurance.
This life insurance myth is not true if you have children and spouse whom depend on your income. By having life insurance coverage, it will protect them as the dependents and will provide steady source of income after you as the breadwinner passed away.

Another thing to consider is if you are retired and depend on your partner’s pension to support life. This support will not last forever, it will disappear upon his/her death.
This is another reason why you should consider buying one.

At the very minimum, when no one depend on your income for their daily need like children or spouse, you should also consider to have life insurance coverage to cover other things. Consider how you want to pay mortgage debts, car loans, credit cards, and to cover your funeral expenses.

I have enough life insurance troughs my company.
Even though your company provides employer sponsor life insurance, this is not to say that the coverage is enough to support your family to live in the event of your death. Take a look at how much this life insurance policy. Calculate and compare if this will leave your family a comfortable life. Most of the case? You need to upgrade to more expensive plan.

Do you aware that employer sponsored life insurance will only last as long as you are being employed there? This is some important consideration to buy one by yourself.

I don’t need life insurance once my kids can support themselves.
Yeah, many parents are under the impression that when the kids can fully support themselves and leave the house, parents don’t need life insurance. Okay, you may not need to secure your family income to support your kids anymore. But clearly, your unpaid mortgages and any debts need to be coverage as well.

I don’t need life insurance because I have mortgage life insurance.
Your mortgage may have been covered from mortgage lender, but it’s not enough.
While this is all very true that mortgage life insurance pays off your mortgage if one of the people listed on the loan dies before it’s paid. But that’s the only thing that will be covered. What about the rest?
When you buy term life insurance, its coverage can be used for anything, including funeral expenses, paying down a mortgage, car loan and credit cards, or to protect the loss of income to support your family finances.

Life Insurance is too expensive for me to buy.
This is no longer true if you consider the benefit of life insurance coverage. In fact, your dependents can continue their life in the case of your death. Imagine how miserable their life without finance support. There is no reason to let the cost of life insurance to avoid you from getting one. You still can get an affordable life insurance rate.

I won’t be able to get life insurance because I’m smoker or even though I quit smoking.
This is the wrong assumption among smokers. As smoker, you still can get one, but the life insurance rate will slightly higher compare to non-smoker. After all, even though you are smoker, it doesn’t mean that you don’t have healthy condition. However, the best option for you to get normal premium is quit smoking. Most of life insurance company will consider you as a non-smoker once you quit smoking for one full year. After that, you will get life insurance rate for non-smokers.

Life insurance is a bad investment.
If you ever want to make big investment from life insurance, you may consider other option. Life insurance is perhaps not the perfect investment vehicle for you. Maybe now you are in the midst of wealth accumulation period. Aggressively put aside your saving into high-gain investment because your time horizon is still in your side. Yet, you still need life coverage of some sort to protect your life during this period until your retirement. When you buy a life insurance policy, you put money into an account that will pay your survivors that same money, a portion of that money, or that money plus more when you die. If your survivors get more than you put in (or more than what the money could have earned elsewhere), life insurance is a good investment. Not only life insurance provides protection for your dependents, it is also a peace of mind for you.©