What really makes life insurance quite interesting and hard to grasp for new customers are the details. So to make things a bit clearer to you here are some basic facts you have to know about life insurance read more...
Choosing the right life insurance types
Common life insurance myths
Myth #1: There's no need in life insurance
In case you're single, don't plan to have children, have enough cash to cover your medical or funeral expenses, and don't have any relatives depending on you financially, then this is mostly true. Otherwise, it certainly pays to have life insurance coverage in order to assure your dependents with the necessary funding in case something happens to you.
Myth #2: I'm self-employed and thus don't need life insurance.
False. Not getting a paycheck doesn't mean that your family members won't take benefit of the benefits provided by the life insurance policy in case you pass away.
Myth #3: My employer provides life insurance, so I don't need additional coverage.
Mostly false. Employer sponsored life insurance usually provides a minimum amount of coverage that will definitely be less than you and your family will need. A separate life insurance policy will allow you to get as much coverage as you and your family really need.
Myth #4: My mortgage lender provides life insurance, I don't need any more.
False. Life insurance through mortgage loans only ensures that the mortgage is paid off in full in case you pass away before doing it by yourself. However, it doesn't replace any income or provide additional benefits to your family members.
Myth #5: Once the children have grown up and the mortgage is paid off, there's no need in life insurance.
The needs in life insurance vary from one family to another. However, don't forget about your spouse and other dependents who may need the benefits of life insurance coverage in case something happens.
Myth #6: Smokers can't get life insurance.
False. Sure, smokers are considered to be high risk customers as their life expectancy is lower than for non-smokers. However, the only consequence of this fact is that smokers are usually charged with higher premiums, nothing more.
Myth #7: If you have smoked in the past, there's no way to get cheaper life insurance.
False. Most life insurance providers classify a person as a non-smoker in case he or she is not smoking for more than a year. And this eventually leads to lower premiums.
Myth #8: I'm young so I don't need life insurance.
Unfortunately, anything can happen and you have to be prepared for the worst scenario when your family will really need life insurance benefits. However, the good news is that the younger you are the cheaper it will be for you to buy life insurance.
Myth #9: There's definitely a catch with term life insurance. It can't be that cheap!
It can. In fact the low rates you get with term policies are because it's the simplest form of life insurance. You have a period of time the policy is active and the odds can be quite low that anything will happen to you during that time, so the rates are lower than with whole life policies, where the payout rate is eventually 100%.
Myth #10: Getting life insurance is complicated.
Just as complicated as getting any other type of insurance. You just go online, compare the quotes, apply for a policy and become covered. Nothing complicated at all.