7 Myth About Life Insurance
The decision to buy life insurance is made once and is not the one that should be made on whimp or just listening to what others say. Your family, relatives and friends give you lots of suggestions regarding life insurance, but how do you know what they say is actually the truth. Maybe some false information has been going around and they suggest you based on that false info. Also, there are a lot of different life insurance plans available in the market and can be quite hard to go through all.
So, here are 7 of the myth that are heard about life insurance explained:
Life insurance is for rest of your life
Just because it has life in life insurance does not mean it is for life. There are actually several types of life insurance available. Some are for life while some are for specific duration of time. You can buy the one which you think is right for you. Term life insurance is for a specific period of time and if you are concerned about your budget then you can go for this whereas whole life insurance is for life and you can get higher benefit out of this.
If you are young, you don’t need life insurance
It is true that when you are young you are healthy and do not require any insurance but life insurance is bought for securing your future. And the fact is if you buy life insurance at a young age it is quite beneficial to you as you get a chance to divide your cost into many installments due to the extended time period which results in a lower premium to be paid. Another fact is you may be young but your parents are not. So, you might consider your parents expenses as their health also detorits to some extent with old age incurring extra health expenses. This might be the reason why you should buy life insurance.
Unemployed shouldn’t get insured
This is a completely wrong concept. Here unemployed generally refers to your wife who doesn’t work. She might not work to generate income but she does take care of your house, raises children and takes care of your old parents. In such condition if your wife meets premature death then your family will be at loss. Your expenses will increase and put a stress on your financial situation. So, it is smart to buy life insurance for your wife.
Once your child is independent you don’t require life insurance
Another wrong myth that has been circulated in the society. Once your child becomes independent, they move out of the house. This may be good for your child but you on the other hand are getting old. As you age, your health expenses may increase and you might have to hire a caretaker. Life insurance helps in such cases. Moreover, if you wish to leave some inheritance to your children then life insurance can definitely do that as death benefit from life insurance is good.
The insurance from your employer is all you need
Nowadays, employers include insurance as a part of your employee benefits. This is actually good but is it enough? You may have debt to pay or have some extra expenses to take care of. And, another fact you will one day retire from your work and then the insurance you have will also be over. Getting another insurance is surely beneficial. But, you should carefully plan when to buy one if you have insurance from the workplace. This can be near your retirement or if you have enough savings then you can buy one early.
You must be healthy to get life insurance
Health conditions do matter while buying life insurance but it doesn’t mean insurance companies won’t let you buy one if you have some health ailments. In case of a health ailment is found, your premium amount would increase as risk also increases but you ultimately get to buy life insurance. The risk refers to your premature death.
All life insurance plan are same
The fundamental concept of all life insurance plans is the same: to provide financial protection in exchange for premium paid. This doesn’t mean all life insurance plans are completely the same. There are a lot of variations included as well. Some may have higher benefits, some may include emergency funds, some have different rider options and so on. Here, instead of classifying them as the same you should choose carefully and take advantage of one that is most beneficial to you