Top 10 Life Insurance Myths

Whether a phenomenon is a fact or fiction, fear or just a false impression depends on an individual’s mindset.

So below are described some common myths or misconceptions which people have regarding life insurance:

(1) I don’t need life Insurance: This is actually a very wrong myth. If an individual doesn’t have children, have no money to cover all debts & funeral expenses, doesn’t feel the need to leave behind any money or income to their spouse or family, then this statement is true I don’t need life insurance. But if you have anyone behind you who relies on your income for their day to day needs or you have any outstanding payments then you definitely need life insurance.

(2) I don’t work outside the home, so I don’t need life insurance: This is not true. Just as you have children and house which would incur some costs for their growth and house-keeping costs which would be required even in the absence of a stay home parent. So this would cost a lot of money and a reason to get involved in life insurance.

(3) I have life insurance through my job, so I don’t need any additional coverage: This is not true. There might be a possibility that your employee insurance coverage might not be protecting yourself and loved ones as much as you want it to be. So one needs to check and review how much employer-paid insurance is provided and calculate whether it is enough to keep family comfortable through difficult times. The most important parameter is that when one leaves the job, the coverage along with that will also cease out.

(4) I have coverage from my mortgage lender. It’s enough: Mortgage life insurance pays off the mortgage if one of the person’s listed on the loan dies before it is paid. But what would happen to others. So for that Term life insurance is there which offers coverage which can be used for anything which includes funeral expenses, paying down mortgage, car loans& offset to loss of income.

(5) I don’t need life insurance once my children are self-supporting & mortage is paid off: Every individuals insurance needs vary. What would happen to your spouse and how will she manages your daily living expenses without your help. It may be possible that she may live 10 or rather 20 years more than you.

(6) I won’t be able to get insurance because I am a smoker: This is not true. Only the thing you would have to do is being a smoker pay somewhat higher premium compared to non-smokers.

(7) Once a smoker always a smoker in eyes of life insurer: This is a wrong misconception. Actually the smokers who have stopped smoking life insurers will check on them for a year and if found non-smoking will have to pay less premiums for non-smoking.

(8) I’m young so I won’t need life insurance: Although it is unlikely that you will die during working years, you are not insuring for what’s likely to happen but instead in case of worst case scenario. This is the reason why life insurance is inexpensive for young, healthy people.

(9) If Term Life Insurance is really so cheap there must be a catch: This is a misconception there is actually no catch. Your basic term life insurance offers coverage so long as you pay your premium. You buy term insurance for duration you need life insurance whether you are kid or until mortage is paid off.

(10) It’s a hassle to get life Insurance: This is a misconception as through internet getting quotes is easy , fast & free with a very less hassle to compare the quotes as well.